Technical outlook:
The US dollar index has pushed through fresh swing highs around 99.60 mark on Wednesday. The index has pushed above 99.45 previous resistance pushing through intermediate highs. Having said that, it should be noted that its counterpart EURUSD has failed to drag towards fresh lows below 1.0800 mark.
The above scenario could be termed as divergence and remains potential turning point going forward. Also note that the US dollar index has produced a bearish divergence on daily RSI as prices rally through fresh highs. It is highlighted on the lower part of the chart, which could be potential bearish reversal.
The US dollar index has been in control of bulls since 97.70 lows and bears need to break prices below that mark to confirm that a meaningful top is in place. Watch out for resistance around 99.80-85 mark as bears prepare to be back in control. Bottom line is to break below 97.70 initial support.
Trading plan:
Potential bearish reversal against 100.00 mark.
Good luck!
