Technical outlook:
US Dollar Index seems to be on its way towards 95.00 and 96.00 levels in the medium term. The indice might be targeting 93.30 levels in the near term and find some resistance there. We can expect a corrective drop thereafter, before US Dollar Index bulls are back in control to push prices higher towards 95.00 and above.
US Dollar Index is seen to be trading close to 92.75 levels at this point in writing and is expected to print one more high close to 93.20/30 mark before producing a meaningful correction lower. Immediate resistance is seen through 93.40 mark, while support comes in around 92.00 levels respectively. A break below 92.00 will confirm that a corrective drop is underway.
Looking at the entire structure since 89.20 lows registered on January 06, 2021; US Dollar Index remains bullish until prices stay above 89.50 levels. Potential remains for the bulls to push through 95.00 and 96.00 levels at least. Also note that 100.00 levels also remain possible if 98.00 breaks in.
Trading plan:
Remain long for now, stop @ 89.50, target @ 95.00 and 96.00
Good luck!
