Technical outlook:
The US dollar index has pushed higher through 95.95 levels in the early Asian session on Tuesday. It is expected to complete the Gartley towards 96.50-70 range going forward. The index is then expected to turn lower towards 93.00 and 91.00 as bears prepare to be back in control. Bottom line for bears to hold ground is the 97.37 mark.
The US dollar index has already carved a bearish boundary between 97.37 and 95.00 levels as seen on the daily chart presented here. The Fibonacci 0.618 retracement of the above drop is seen around 96.50 mark and hence probability remains high for a bearish turn if prices manage to push through.
The larger degree wave structure for US dollar index is also bearish against 97.37 mark. The index had dropped between 104.00 and 89.20 levels earlier, which was retraced around fibonacci 0.50 levels. Bears confirmed their control by producing a bearish Evening Star candlestick pattern from 97.37 levels. Watch out for bears coming back in control from 96.50 soon.
Trading plan:
Potential push through 96.50 first, then drop through 93.00 and 91.00 levels.
Good luck!
