Trading Plan for EUR/USD and U.S. Dollar Index for the month of October, 09, 2017

Technical outlook:

The pair EUR/USD has been forming a series of lower highs and lower lows since the formation of a higher potential to 1.2092 levels earlier. Looking at the current share price, short-term zone of the structure has been presented here for the trade direction in the next 1-2 days. The model that is taking shape in this moment could be an ending diagonal, which occurs in 5 waves (labelled i to iv here) with each wave sub-dividing it into 3 waves. If the wave count is true, the price should ideally stay below 1.1786 levels and push the bottom through 1.1660 levels at least. Please also note that 1.1660 is also previous support prices seen on the 4H chart view and that could be the next target in the short term before the bulls come back into play. In addition, please understand that all rallies after that should be corrective and taken as opportunities to go short again. Immediate price resistance is at 1.1786 even if the support is to 1.1660 level, respectively.

Trading Plan:

Aggressive: Please remain short with a stop above 1.1786 and the lower target at 1.1660/70.

Conservative: Please go long at lower levels 1.1660/70, the targeting 1.1830 and 1.1900/30.

US Dollar Index chart configurations:

Technical outlook:

The US Dollar Index has been forming higher highs and lows since the printing of the trough to the 91.00 levels of return in September 2017. In addition, its upward channel support trend line remains intact without breaking below all hollow. Looking at the last wave pattern, the US Dollar Index could be the production of a potential ending diagonal and may be in its last stage of rally, which might push through 94.50 levels. If this wave count holds to be true, the index to stay above 93.25 levels to push through its resistance line of the channel, which is seen through 94.40/50 levels for now. On the downside, a drop below 93.25 levels would indicate an intermediate top is in place and that the prices should seek to trace the lowest. Immediate support is at 93.25 while resistance is seen at 94.40/50 levels, respectively.

Trading Plan:

In the short term, please stay long with risk below 93.25 and target 94.40/50

Medium-term strategy would be to remain flat for now and look to sell more at 94.40/50

Fundamental outlook:

No major events are lined up for the rest of the day.

Good luck!

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