Technical outlook:
The US Dollar Index seems to have bounced off its immediate trend line support from sub 96.00/10 levels earlier but the rise should be temporary and the index should find resistance from around the 97.10/20 region. Also note that fibonacci 0.618 resistance of the drop between 97.70 and 96.10 levels is around 97.10 levels as well, hence we can expect a bearish reaction there. Immediate resistance is seen through 97.50, followed by 97.70 levels; while support is seen at 95.65 levels respectively. A drop through support mentioned above, would confirm that bears are in control and that a meaningful resistance is in place at 97.70 levels. Downside is seen through 95.00 and lower levels.
Trading plan:
Remain short, stop above 97.70, target is 95.00 and lower.
Good luck!
