Technical outlook:
The US dollar index has been drifting sideways for the last 24 hours after a drop from 97.37 through 95.10 over the last week. The index has carved an Evening Star reversal pattern and also a meaningful downswing though initial support still remains intact at 94.50. Potential remains for a pullback through the 96.50 mark before the trend resumes lower again.
The index is working upon its recent downswing between 97.37 and 95.10 levels at the time of writing. Bulls might be poised to produce a retracement toward Fibonacci 0.618 levels of the above drop, which is seen around 96.50 levels. High probability remains for prices to produce a bearish reaction there and turn lower towards 91.50 and further.
The overall larger wave structure also remains bearish until prices stay below the 97.37 swing highs. The earlier drop between 104.00 and 89.20 has been retraced close to fibonacci 0.618 level close to 97.37. Ideally, bears should drag prices lower from here and drag below 89.20 to complete the wave structure.
Trading plan:
Potential drop to 93.00 and 91.00 against 98.00
Good luck!
