Technical outlook:
The US dollar index is still carving its Gartley corrective structure as prices trade lower towards 95.80 at the time of writing. Possibility still remains for a push through 96.50 mark to complete the correction and resume lower again. Bulls are inclined to remain in control until prices stay above the 95.00 mark in the near term.
The US dollar index has carved a meaningful downswing between 97.37 and 95.00 levels in the past few trading sessions. The above is being retraced for now and 96.50 remains a strong resistance zone. Also note that it is the Fibonacci 0.618 retracement of the above drop and hence a bearish turn remains highly probable if prices manage to reach there.
Furthermore the US dollar index is carving a Head and Shoulder reversal pattern with Head at 97.37, Left Shoulder around 96.50-80 and Right Shoulder is being carved now. Bears might be preparing for a comeback from those levels and drag prices lower towards 93.00 and 91.00 levels respectively.
Trading plan:
Potential rally to 96.50-80 and then reversal below 91.00
Good luck!
