The US dollar index has print yet another high around 100.65 on Monday, barely testing the previous swing. Looks like a potential top in place and if correct, prices should reverse sharply towards 97.60 mark in the next few trading sessions. Bears need to hold below 100.65 level to keep the short term outlook intact.
The US dollar index has rallied between 97.60 and 100.65 levels since March 31, 2022. It could be seen as the last leg higher before a major reversal ahead as the price action has been accompanied by a bearish divergence on daily RSI. The above is an indicator of a potential trend reversal ahead.
The US dollar index had earlier dropped between 104.00 and 89.20 levels carving a meaningful downswing. Furthermore, it has retraced higher just above the Fibonacci 0.618 levels around 100.65 mark. If the above structure holds well, the next major move should be on the south side, dragging below 89.20 in the next several weeks.
Trading plan:Potential drop to 97.50 and 91.00 against 101.00
Good luck!