Technical outlook:
The US dollar index is preparing to carve a lower high just blow the 99.45 high and reverse lower towards 94.50 initial support in the next few trading sessions. The index is seen to be trading just below 98.70 mark at this point in writing and continue lower. Bears need to keep prices below 99.45 mark to keep the bearish structure intact.
The US dollar index is producing a potential Evening Star candlestick pattern around current levels (98.70) and confirm a reversal going forward. Today's event risk might just prove to be the much wanted trigger to proceed through technical support around 94.50. Also note that its one year long trend line support will also break it 94.50 is taken out.
Eariler, the index had dropped from 104.00 through 89.20 lows, carving a meaningful bearish boundary. Futhermore, the subsequent rally through 99.45 is corrective and reached up to its fibonacci 0.618 retracement. Ideally, bears should be back in control from here and push prices lower through 89.20 mark in the next several months.
Trading plan:
Potential drop to 94.50 against 100.00
Good luck!
