Technical outlook:
The US dollar index rallied through 99.25 levels in early hours on Monday, before finding some resistance. The index has pulled back to 99.15 level at this point in writing, expected to continue further lower. A drop below 97.70 will accelerate toward 94.50 initial support, confirming a trend reversal at larger degree.
The US dollar index has remained shy by just a few points from 99.30 as the boundary still remains intact. The recent rally could be termed corrective until prices stay below 99.30 and broadly below 99.45 levels. If the above structure holds well, we can expect 95.00 levels in the near term as bears will regain control.
Earlier, the US dollar index had dropped between 104.00 and 89.20 carving a meaningful bearish boundary. The same has been further retraced through fibonacci 0.618 levels close to 99.45. Potential remains for a bearish turn to reach down to 89.20 and lower.
Trading plan:
Potential drop to 94.50
Good luck!
