Technical outlook:
US Dollar Index might be ready to decline through the 90.90 level before resuming its rally towards 96.00 and higher. Bulls managed to carve a meaningful rally between 89.50 an 93.19 in the past few weeks. The index might retrace the entire boundary and drop through the fibonacci 0.618 mark, which also passes through 90.90 (not shown here).
US Dollar Index is seen to be trading around the 92.90 level at the moment of writing. Bears might take control back for a few trading sessions. The counter trend corrective drop should accelerate on a break below the 92.00 interim support level. Immediate resistance is seen at 93.20, while support comes in around 91.75/80.
The index is structurally in a downtrend from the 103.00 high logged in March 2020. The recent rally from the 89.20 low is unfolding into 3 corrective waves and might reach 96.00 . The overall downtrend might be resumed thereafter.
Trading plan:
Remain bullish, stop is at 89.50, target is at 96.00 (medium term)
In the short term, remain bearish with the traget of 90.90.
Good luck!
