Technical outlook:
The US dollar index has rallied through the 98.70-75 zone, a potential resistance zone, as discussed on Monday. The high probability remains for a lower top to be carved here and prices to reverse from here. Bears need to keep prices in check below the 99.30 interim resistance for the bearish outlook to remain intact.
The US dollar index is seen to be working upon its recent lower degree downswing between 99.30 and 97.70 respectively. The index has pulled back through its Fibonacci 0.618 retracement seen passing through 98.75. The probability remains for bears to come back in control now and drag prices below the 97.70 mark.
Earlier, the US dollar index had dropped between 104.00 and 89.20 levels, carving a meaningful larger degree downswing. The same has been retraced to its Fibonacci 0.618 levels just around the 99.45 mark. If the above structure holds well, the index might prepare to resume lower towards 94.50 and up to 89.20 levels in the medium-long term.
Trading plan:
Potential drop to 94.50 against 100.00
Good luck!
