Technical outlook:
The US dollar index found interim support around the 101.40 mark last week. The index is now looking to push through 102.53 interim resistance and reach up to 103.50 levels before terminating its Down Gartley. Bulls are looking poised to hold prices above the 101.00 mark to keep the immediate structure intact.
The US dollar index is expected to rally towards 103.50, which is the Fibonacci 0.618 retracement of the recent downswing between 104.88 and 101.08 levels respectively. Bears will be inclined to come back in control thereafter and drag prices through 99.00 and up to 95.00 levels.
The US dollar index is working on its larger degree upswing between 89.50 and 104.88 levels. A similar degree pullback could be on its way now dragging close to the 95.00 mark, which is the Fibonacci 0.618 retracement level of the above rally. Traders might remain long for short-term gains towards 103.40-50 then turn lower again.
Trading plan:
Potential short term rally toward 103.40-50 then lower again through 99.00 and 95.00 against 105.00
Good luck!
