The US dollar index has reversed from its Monday high around 97.30 levels through 96.65 mark at the time of writing. The index might have carved a meaningful top close to 97.70 levels over the last week before turning lower.Bears will be inclined to remain in control from here and drag prices through 94.00 and 92.00 levels going forward.
The US dollar index needs to break below its trend line support, which is now passing around 96.00 mark, to accelerate further and confirm that trend has reversed. A break below 95.00 will further confirm that bears are back in control and are here to stay for long. Imediate price support is just below 95.00 as bears target to break lower near term.
The larger degree wave structure for US dollar index continues to remain bearish as prices have retraced the previous downswing between 104.00 and 89.20. The recent swing high around 97.70 is just above the Fibonacci 0.50 level of the earlier bearish boundary. If correct, the next move should be lower from here towards 92.00 and 91.00, going forward.
Trading plan:Potential drop through 92.00 against 98.00
Good luck!