Technical outlook:
US Dollar Index seems to be preparing to resume its rally towards 95.00 and 96.00 levels as shown on the daily chart here. The index might have produced A-B-C wave structure between 89.20 and 89.53 price action since January 06, 2021. Also note that US Dollar Index found support around the fibonacci 0.786 retracement of the rally between 89.20 and 93.40 levels respectively.
US Dollar Index is expected to turn higher from current levels provided 89.53 lows remain intact. The index is seen to be trading around 90.09 levels at this point in time and bulls are looking poised to continue pushing higher. Intraday drop remains possible towards 80.90 levels, which is fibonacci 0.618 retracement of the recent rally between 89.20 and 90.30 levels respectively.
Immediate price support is seen through 89.53, followed by 89.20; while resistance is around 90.90, followed by 91.40 levels respectively. A break above 91.40 in the near term would confirm that bulls are back i control and are here to stay for long.n the flip side, a break below 89.20 will change the current bullish scenario.
Trading plan:
Remain long, stop @ 89.00, target @ 95.00
Good luck!
