Technical outlook:
The US dollar index has rallied close to 99.00 levels after having dropped to 97.70 lows over the last week. The structure seems to be consolidating since last few weeks and need to break its trading range between 97.70 and 99.35 levels to determine its next major move. Bears would have to keep prices below 99.45 mark to keep the structure intact.
The US dollar index is working upon its recent downswing between 99.35 and 97.70 levels. Prices have managed to reach the Fibonacci 0.786 retracement of the above downswing around 98.90 levels. If the above structure holds well, the next big move should be on the south side towards 94.50 levels if not further.
A break below 94.50 will also confirm that overall trend has turned bearish and bears are here to remain in control for longer. The US dollar index has already retraced its earlier downswing between 104.00 and 89.20 levels. The index has found resistance around its fibonacci 0.618 retracement close to 99.50 mark. High probability remains for a turn lower from here.
Trading plan:
Potential drop through 94.50 against 100.00
Good luck!
