empty
13.07.2022 06:41 AM
Trading plan for US dollar index on July 13, 2022

This image is no longer relevant

Technical outlook:

The US dollar index climbed towards 108.30 on Tuesday before reversing sharply lower to 107.53 intraday. The index oscillated within the 80-pips range producing a Doji candlestick pattern on the daily chart. A high probability remains for a bearish Evening Star candlestick pattern indicating a potential trend reversal. We will be able to recognize it according to further price action.

The US dollar index has remained in control of bulls since January 06, 2021, after printing lows at around 89.20. The index has remained in a religious uptrend thereafter, carving a series of higher highs and higher lows towards 108.30 recently. The entire rally seems complete or close to complete. Hence, a probability remains for a meaningful corrective drop to unfold going forward.

The US dollar index is looking to drag lower towards the 101.00 support, which is also the Fibonacci 0.382 retracement of the entire rally between 89.20 and 108.30. A break below 103.15 will be encouraging for bears and could be the first step towards a larger correction. Also, note that prices could drop towards the Fibonacci 0.618 retracement that matches the 95.00-96.00 zone.

Going forward:

The US dollar index has potentially terminated a larger-degree upswing towards 108.30. Furthermore, recent highs have been accompanied by a bearish divergence on the daily RSI. This could be viewed as a strong indicator of a potential trend reversal towards 101.00 at least. The bottom line for the above is that prices should stay below 108.30.

Trading zone:

Potential drop towards 101.00 against 108.50

Good luck!

Oscar Ton,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

GBP/USD: Trading Plan for the U.S. Session on May 28th (Review of Morning Trades)

In my morning forecast, I highlighted the 1.3497 level and planned to base entry decisions on it. Let's look at the 5-minute chart and see what happened. A rise

Miroslaw Bawulski 18:31 2025-05-28 UTC+2

EUR/USD: Trading Plan for the U.S. Session on May 28th (Review of Morning Trades)

In my morning forecast, I highlighted the 1.1300 level and planned to base my entry decisions around it. Let's take a look at the 5-minute chart to see what happened

Miroslaw Bawulski 18:27 2025-05-28 UTC+2

How to Trade the GBP/USD Pair on May 28? Simple Tips and Trade Analysis for Beginners

Analysis of Tuesday's Trades 1H Chart of GBP/USD On Tuesday, the GBP/USD pair also traded lower for the same reasons as the EUR/USD pair. First, after a conversation with Ursula

Paolo Greco 06:41 2025-05-28 UTC+2

How to Trade the EUR/USD Pair on May 28? Simple Tips and Trade Analysis for Beginners

Analysis of Tuesday's Trades 1H Chart of EUR/USD On Tuesday, the EUR/USD currency pair continued its downward movement, which had begun on Monday. The dollar continued to strengthen the night

Paolo Greco 06:41 2025-05-28 UTC+2

Trading Recommendations and Analysis for GBP/USD on May 28: A Minor Correction Won't Hurt

On Tuesday, the GBP/USD currency pair also traded lower for the same reasons as the EUR/USD pair. However, it cannot be said that the British currency depreciated significantly—an upward movement

Paolo Greco 04:10 2025-05-28 UTC+2

Trading Recommendations and Analysis for EUR/USD on May 28: The Dollar's Joy May Be Short-Lived

The EUR/USD currency pair showed a somewhat significant downward movement on Tuesday. However, this move did not impact the overall trend, market sentiment, or the broader context. The strengthening

Paolo Greco 04:10 2025-05-28 UTC+2

GBP/USD: Trading Plan for the U.S. Session on May 27th (Review of Morning Trades)

In my morning forecast, I highlighted the 1.3545 level and planned to make trading decisions based on it. Let's look at the 5-minute chart and see what happened. A decline

Miroslaw Bawulski 20:13 2025-05-27 UTC+2

EUR/USD: Trading Plan for the U.S. Session on May 27th (Review of the Morning Trades)

In my morning forecast, I highlighted the 1.1374 level and planned to make trading decisions based on it. Let's look at the 5-minute chart to analyze what happened. A decline

Miroslaw Bawulski 20:07 2025-05-27 UTC+2

How to Trade the GBP/USD Pair on May 27? Simple Tips and Trade Analysis for Beginners

Analysis of Monday's Trades 1H Chart of GBP/USD On Monday, the GBP/USD pair reached 1.3580 — heights the British pound hadn't seen in over three years. As we've said

Paolo Greco 07:04 2025-05-27 UTC+2

How to Trade the EUR/USD Pair on May 27? Simple Tips and Trade Analysis for Beginners

Analysis of Monday's Trades 1H Chart of EUR/USD The EUR/USD currency pair continued its upward movement on Monday, which had started back on Friday. Only in the second half

Paolo Greco 07:04 2025-05-27 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.