Technical outlook and chart setups:
The US Dollar Index finally picks support off the 99.40/50 levels yesterday and staged an impressive rally through 101.30 levels till now. Please note that this rally might not just be the end of the corrective drops that has begun from 102.05 levels earlier. Instead, the index might just be carving out a lower high and continue lower toward 99.00 and 98.50 levels. On the other hand, if we assume that a low has been carved out at 99.40 levels, the index needs to at least pullback lower toward 100.00/50 levels before turning bullish again. It is hence recommended to initiate short positions again with risk above 101.50 levels. Immediate resistance is seen at 101.50 levels, while support is at 99.40 levels respectively.
Trading recommendations:
Remain short again, stop at 101.60, target 100.00 at least and 98.50 levels.
Good luck!
