Technical outlook:
The 4H chart view has been presented here for a short term outlook for US Dollar Index. The index faced resistance last week around 96.85 levels and reversed sharply lower producing an engulfing bearish candlestick pattern as seen here. The subsequent rally yesterday was corrective in nature. If the price is unable to break higher, we should witness a sharp decline towards 95.30 levels as projected here. Please note that resistance is seen at 95.85 levels, while support is now seen at 95.35 levels respectively. A break below the intermediary support trendline shown here would be extremely favorable for bears. On the flip side, a break above 95.85 levels would delay matters further.
Trade recommendations:
Short US Dollar Index, stop above 95.85, target 95.35 at least,
Good luck!
