Technical outlook:
The US dollar index is following through lower and trades close to 96.00-20 levels at the time of writing. The index has carved a bearish Evening Star candlestick pattern on the daily chart after testing 97.30-40 mark over the last week. Bears might have carved a meaningful top already and are looking to drag lower below 94.50 levels in the near term.
The index had earlier dropped between 104.00 and 89.20 levels carving a meaningful larger degree downswing. The subsequent rally between 89.20 and 97.30 was a corrective gartley. Also note that the recent rally terminated just over fibonacci 0.50 retracement of the primary downswing as depicted on the daily chart presented.
Ideally, prices should drag through 89.20 and print lower in the next several weeks. The US dollar index is now facing resistance at 98.00, while support comes in around 94.50-60 levels respectively. Bears might be poised to drag below 94.50 to confirm a potential trend reversal and that they are back in control.
Trading plan:
Potential drop below 94.50 against 98.00
Good luck!
