Technical outlook:
The US dollar index dropped through 95.70 levels on Tuesday before pulling back. It is seen to have regained the 96.00 handle at this point in writing and is expected to push through 96.50-60 zone in the next few trading sessions. Bears might remain inclined to be back in control thereafter and drag prices lower toward 93.00 and 91.00 levels respectively.
The US dollar has already carved a meaningful downswing between 97.37 and 95.00 levels, which is being retraced for now. Prices need to stay below 97.37 levels to keep the above bearish structure intact. Also note that the Fibonacci 0.618 retracement of above downswing is seen through 96.50-60 mark. High probability remains for a bearish reversal if prices manage to reach there.
The overall wave structure for US dollar index also presents a bearish view against 97.37 mark. The meaningful downswing between 104.00 and 89.20 has already been retraced to the Fibonacci 0.50 levels as presented on the daily chart view. Bears would be inclined to remain in control until prices remain below 97.37 mark.
Trading plan:
Potential drop to 91.00 levels against 98.00.
Good luck!
