Technical outlook:
The US dollar index dropped through 102.30 after hitting the high of 102.50 on Thursday. The indice has been drifting in the range between 102.00 and 102.50 for last few trading sessions. Near-term potential remains for a push through 103.40-50 as bulls are poised to hold prices above 101.00.
The US dollar index produced a lower degree downswing between 104.88 and 101.08 in the past few trading sessions. Bulls have been unfolding a corrective wave since then, which tested the Fibonacci 0.382 retracement located at 102.50-60. Potential remains for a push through 103.50, which is the Fibonacci 0.618 retracement level.
The US dollar index's overall structure remains bearis over the medium term against 104.88. The entire rally between 89.50 and 104.88 is being worked upon and should be retraced up to the 99.00 mark at least. Also note that 99.00 is close to the Fibonacci 0.382 retracement of the above rally. Hence, high probability remains for a bullish reversal from there.
Trading plan:
Potential drop through 99.00 against 104.88.
Good luck!
