Technical outlook:
The US Dollar Index is trading around 92.77 mark and could be preparing to print below 92.50, before producing a meaningful pullback. The index has remained just shy of breaking below 92.50 initial support and is consolidating between 92.60/70 levels for the day, attempting a break higher. High probabilities remain for a push towards 93.20 in the near term.
The index has rallied between 89.50 and 93.74 levels in the past few weeks, carving a meaningful upswing. Ideally, the entire rally should be retraced by a corrective drop, which reached around 91.00 mark. Also note that fibonacci 0.618 retracement of the above rally is passing through 91.00 levels.
If bears are successful in dragging prices lower towards 91.00 zone, probability remains for a bullish bounce. The support trend line through 89.50 mark is also converging around 91.00, going forward. Bulls could be preparing to take control back thereafter.
Trading plan:
Probability for a drop towards 91.00 against 93.72.
Good luck!
