Technical outlook:
The US dollar index rose through the 104.24 high during the New York session on Thursday before it faced mild resistance. The index has eased off a bit and is seen to be trading close to 104.00 at this point in writing. The bulls are looking poised to push through the 105.50 initial resistance in the near term, provided that 103.00 holds good.
The US dollar index might have carved a significant bottom close to the 103.00 mark last week. The corrective drop, which began from the 114.70 high, looks complete around 103.00, printed last week. If the above structure holds well, the bulls will remain in control from here on and push through 105.50 and 107.00 levels in a few coming sessions.
On the flip side, if the index is ready to produce a much deeper correction lower below 103.00, we can expect prices to produce a pullback/corrective rally at least towards 110.50 in the near term. The bears might be back in control thereafter, targeting below 103.00. Either way, the bias is looking higher in the near term.
Trading idea:
Potential rally against 102.00
Good luck!
