Technical outlook:
The US dollar index is trading near a Friday close at the 89.92 level. It has managed to rally towards 91.00 levels today, before pulling back. It is seen to be trading around the 90.55 level at this point in writing. It is expected to rally further to 91.30 in the near term.
Last week, the US dollar index had registered a low of 89.75, which could be immediate potential support now; while near-term resistance is seen at 91.30/40 respectively. Please note that the US dollar index might have carved a major bottom at the 89.75 level. Bulls might remain inclined to push higher to 94.75 over the next several weeks.
The wave structure on the daily chart might be turning bullish over the long term and the Us dollar index could rally to 98.00 as well. It is the Fibonacci 0.618 retracement of the entire drop between the 103.00 and 89.75 levels respectively.
Trading plan:
Remain long, stop @ 88.00 targeting 94.80.
Good luck!
