Technical outlook:
The US dollar index rose to 102.53 on Thursday before finding mild resistance. Please note it has hit the Fibonacci 0.382 retracement of the earlier drop between 104.88 and 101.08 as projected on the daily chart. Bulls will be keen to hold prices above the 101.00 mark in the near term.
The US dollar index is seen to be trading close to 102.00 at this point in writing and is expected to produce yet another leg higher towards 103.40-50 going forward. Also, note that 103.40 is close to the Fibonacci 0.618 retracement of the above drop, hence there is a high probability for a bearish reaction.
The US dollar index is working on a larger degree upswing between 89.50 and 104.88. The index is expected to drop towards 99.00 and up to 95.00 in the next several weeks. As the above short-term rally towards 103.40 is complete, bears will prepare to resume the next swing lower towards 99.00 at least.
Trading plan:
Potential short-term rally to 103.40, then lower towards 99.00 and 97.00 against 105.00
Good luck!
