The US dollar continues its stunning uptrend with yet another high around 103.56 during the early Asian session on Thursday. The index is seen to be trading near the high around 103.40 levels at this point in writing and is expected to test 104.00 resistance in the near term. The rally from 99.65 low has been going on for eight trading days as there is no sign of a bearish reversal seen.
A failure to break above 104.00 would bring back bears into play as they prepare to come back into control. For now, the momentum remains on the long side along with bearish divergence seen on the daily RSI. Technical indicators are signalling overbought conditions and divergence but the price action still needs to be confirmed.
Immediate price support is seen through 99.65, followed by 97.70 and further while resistance comes around the 104.00 mark respectively. A break below 99.65 is needed to break the momentum and to confirm that bears are back in control. Traders await a bearish trading signal to initiate fresh short positions.
Trading plan:Preparing for a potential bearish reversal.
Good luck!