Technical outlook:
The US Dollar Index of the day chart has been presented here, which is indicating a major bottom formation around 89.20 lows over the last week. The index has continued to gain momentum today, as spot rates has reached 90.54 levels today. The index is trading at intraday's highs around 90.54 levels at this point in writing and bulls remain inclined to push through 91.20/30 levels in the near term.
Immediate resistance is now seen towards the 91.30 mark, while support is strong just above 89.00 levels respectively. It is quite possible that US Dollar Index continues to rally towards 91.30 from here, but probabilities remain for a corrective drop first, towards 89.50/60 levels, before resuming its rally. Either way, it is safe to hold long positions and add more on dips towards 89.50/60 levels respectively.
The overall structure on daily chart looks complete from 103.00 highs in March 2021 through 89.20 lows over the last week. Bulls are now looking determined to remain in control and push prices through 94.50 and 98.00 levels in the next several weeks.
Trading plan:
Remain long, stop @ 88.50, target is 94.50 and 98.00.
Good luck!
