Technical outlook:
The US dollar index dropped through 97.70 lows last Friday before finding interim support. The index has pulled back since then and is seen to be trading around 98.30 mark at the time of writing. The rally could face resistance around 98.70 level as bears remain inclined to stay in control. Prices need to stay below 99.45 mark to keep bearish outlook intact.
The US dollar index is working upon its recent downswing between 99.30 and 97.70 levels for now. The Fibonacci 0.618 retracement of the above is seen close to 98.70 mark, which is the next turning point lower. We can expect prices to carve ;ower lows and lower highs thereafter and break below 94.50 support.
It would then confirm that trend has reversed and bears will remain in control for long. The US dollar index had earlier dropped between 104.00 and 89.20 carving a meaningful downswing. The index has retraced the above boundary and found resistance around fibonacci 0.618 mark (99.45). High probability remains for the trend to resume lower from here.
Trading plan:
Potential drop to 94.50 against 100.00
Good luck!
