The US dollar index rallied through 96.36 mark on Monday before pulling back. The index is trading close to 96.20 levels at the time of writing and is expected to push one last time through 96.50 mark before resuming lower again. Please note that probability remains for a meaningful top in place around 96.36 and bears night be preparing to be back in control.
The index carved a meaningful downswing between 97.37 and 95.00 levels over the last week. It was expected to be retraced through 96.00 and 96.50 levels if not further. Prices have managed to reach close to the Fibonacci 0.618 retracement, which is seen around 96.50-60 zone. Hig probability remains for a bearish turn if prices reach there.
The overall wave structure continues to remain bearish until prices stay below the 97.37 mark, going forward. The earlier drop between 104.00 and 89.20 has been retraced up to fiboacci 0.50 around 97.37 before turning lower. An Evening Star candlestick pattern had confirmed a potential turn lower towards 93.00 and 91.30 levels respectively.
Trading plan:Potential drop through 93.00 and 91.00 against 98.00
Good luck!