Technical outlook:
The US dollar index slipped through 97.70 mark on Thursday before finding some support. The index has pulled back above the 98.00 handle for now and could print yet another low before producing a meaningful pullback. Bears will now be poised to keep prices below 99.30 mark and keep the above bearish structure intact.
The US dollar index has also confirmed another Evening Star bearish candlestick pattern on the daily chart after carving a lower high around 99.30 levels early this week. It the above structure holds well, the index could stop to 94.50 levels in the near term. Further it would also confirm that the trend has reversed and that bears are back in control.
Intraday pullbacks remain possible but resistance is expected to come across 98.70 mark and prices would stay below the 99.30 interim resistance keeping the bearish view intact. A break below the one year support trend line seen on the daily chart will accelerate further downside and target below 93.00 levels.
Trading plan:
Potential drop through 94.50 against 100.00
Good luck!
