Fundamental analysis

Trading plan for US dollar index on November 4, 2022

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Technical outlook:

The US dollar index rose to the 112.80 mark on Thursday before finding resistance and turning lower. The index is seen to be trading close to 112.25 levels at this point in writing as bears might prepare to come back in control. A high probability remains for a fall to 107.00 levels before the index could find some support again.

The US dollar index is facing immediate resistance at 113.65, followed by 114.67 while support is seen around 107.40, followed by 104.30 respectively. Furthermore, the price is pulling back after hitting the back side of the past support trend line, which should act as strong resistance going forward.

The immediate bearish boundary, which is being worked upon is between 112.80 and 109.00 respectively. Quotes are seen to reverse from the 0.786 Fibonacci retracement of the above around 112.80 levels. A break below 110.00 will confirm that the price is heading further south towards 107.00 at least. Only a consistent break above 113.65 could nullify the above structure.

Trading plan:

Potential drop towards 107.00 against 113.65

Good luck!

The material has been provided by InstaForex Company –