Technical outlook:
The US dollar index has dropped to 92.50 after testing the 92.75 level early this week. Also note that 92.75 is the fibonacci 0.50 retracement level of the drop between 93.72 and 91.94 as marked on the 4H chart here. Possibility remains for a rally towards 93.00/10, which is fibonacci 0.618 of the above drop, before reversing lower again.
The index is carving a counter trend towards 91.00 handle before resuming its rally towards 95.00 and 96.00 levels in the next several weeks. Also note that 91.00 is convergence of the trend line support and fibonacci 0.618 retracement of the entire rally between 89.50 and 93.72 as highlighted in pink box here. Bulls remain inclined to resume rally from 91.00 level going further.
The US dollar index is seen to be trading around 92.50 at this point of writing and is expected to drop further to the 92.25-30 zone during the day. Immediate resistance is seen at 92.75, while support comes in around 91.95 respectively. Overall wave structure remains bullish towards 95.00 and 96.00 against 89.50 levels.
Trading plan:
Potential to drop towards 91.00 against 93.75
Good luck!
