Technical outlook:
The US Dollar Index is ready to accelerate its drop lower, as Wave (iii) is underway. We foresee 96.90 levels as wave (iii) is progressing. For this structure to hold, prices should ideally remain below 98.75 and 99.10 going forward. Please note that Wave (i) is sub divided into 5 waves, and wave (ii) unfolded into 3 waves a-b-c, terminating at fibonacci 0.786 resistance of wave (i). Ideally, the US Dollar Index should continue lower as waves (iii) (iv) and (v) are unfolding. It might be too early to confirm but a meaningful top could be in place at 99.30 levels. Trading point of view, remain short with risk above 99.10 at least. Immediate resistance stays at 99.10, followed by 99.30 while interim support is at 97.85, expected to be taken out soon.
Trading plan:
Remain short from here (98.16), risk above 99.10 or 99.30, target 97.00 minimum.
Good luck!
