The US dollar index reversed sharply lower after hitting 103.50 on Wednesday post the FOMC. The index continued to slide through 102.20 intraday on Thursday and is now seen to be trading close to 102.60. Bears might be poised to remain in control from here and 103.78 remains the bottom line now.
The US dollar index might continue to slide through 102.00 in the near term. Intraday resistance is seen through the 102.80-90 mark as bears prepare to resume lower. Ideally, prices should remain below 103.50 to confirm a meaningful top and potential trend reversal ahead. On the flip side, a break would indicate further upside going forward.
The US dollar index is well supported around 99.95, followed by 97.70, while interim resistance stays at 103.78 respectively. A break below 99.65 would confirm that bears are back in control and a potential trend has reversed. Traders might be preparing to initiate fresh short positions now with risk just above the 103.78 mark.
Trading plan:Potential drop through 99.65 and 97.70 against 103.78
Good luck!