Technical outlook:
The US dollar index jumped above the 102.70 mark intraday on Tuesday after finding support around 101.50 over the last week. The Down Gartley corrective structure is unfolding into its last leg projected to terminate around 103.50. Bulls remain poised to hold prices above 101.08 to keep the structure constructive.
The US dollar index carved a lower degree downswing between the 104.88 and 101.08 levels as seen on the daily chart. Prices are retracing the recent losses and are expected to reach 103.50, which is the Fibonacci 0.618 level. High probability remains for bears to come back in control thereafter and drag through the 99.00 mark at least.
The US dollar index is structurally carving a larger degree corrective drop towards 99.00 and up to 95.00. If the prediction is correct, prices might extend through 103.50, remaining below 104.88. Traders might be prepared for a short-term rally through 103.40-50 before turning short again.
Trading plan:
Potential short-term rally through 103.50, then bearish turn through 99.00 and beyond 105.00.
Good luck!
