Technical outlook:
The US dollar index has pushed through fresh highs around 100.39 levels on Wednesday. The index has continued to defy resistance printing fresh swing highs for the third consecutive session. A continued push through 100.50 will open the door to test 101.00 mark before finding resistance again. Risk for downside turn remain high now.
The US dollar has print three consecutive swing highs around 100.12, 100.27 and 100.39 levels in the past few trading sessions. Having said that, it is worth noting that each high is accompanied by a strong bearish divergence on the daily RSI as presented today. This could be a strong indication for a potential trend reversal ahead.
The US dollar index faces strong initial support around 97.70 and bears might be poised to drag prices lower. The drop will confirm that a meaningful top is in place and trend has reversed for good. Until that happens, bulls will attempt to push through fresh highs around 100.95 levels i the next few trading sessions.
Trading plan:
Preparing for a potential trend reversal.
Good luck!
