Technical outlook:
The US dollar index has reversed from 103.15 last week, producing a strong Evening Star bearish candlestick pattern. Ideally, prices should stay below the 103.15 high and drag lower towards 100.80 in the near term. Intraday resistance is seen close to 103.00 as the bears are getting ready to come back in control. The instrument is looking lower against 103.15.
The US dollar index drifted sideways for several weeks and finally terminated a contracting triangle around 103.15. If the projected triangle scenario holds well, the price will stay below 103.15 and broadly below 104.23 levels going forward. The index would drag lower towards 100.30 and further to complete a larger-degree corrective pattern.
Also, note that the US dollar index has carved a lower-degree downswing between 103.15 and 102.35 in the last few trading sessions. The instrument also found resistance close to 102.80, which is the Fibonacci 0.618 retracement of the above drop. The high probability remains for a bearish turn towards 101.40, 100.80, and 100.34 levels in the near term.
Trading idea:
A potential drop towards 100.34 to resume soon.
Good luck!
