Technical outlook:
The US dollar index is trading within a tight range between 104.00 and 104.30 for the last two trading sessions. The index is seen to be trading close to 104.05 at this point in writing and is expected to turn lower through 99.00 going forward. Bears will be poised to hold prices above 105.22 to remain in control.
The US dollar index has been preparing to produce a counter trend (lower) towards 99.00 before resuming higher again. The index might be unfolding a complex corrective structure (expanded flat) to drag prices lower from here. A break below the 101.08 initial support will accelerate prices further towards 99.00.
The US dollar index is retracing its larger degree upswing between 89.50 and 104.88. Ideally, prices should decline towards 99.00, which is the Fibonacci 0.382 retracement level of the above rally. Bulls will remain poised to be back in control thereafter and push prices above 105.50.
Trading plan:
Potential drop through 99.00 against 105.50
Good luck!
