FX.co ★ Trading plan for US dollar index for February 24, 2022

Technical outlook:

The US dollar index has finally pushed through our projected zone around 96.50-60 levels in early hours on Thursday. The index is now seen to be trading below the 96.50 mark and it seems to have carved a meaningful top around 96.67 levels already. If this scenario turns out to be true, bears will be back in control soon and drag lower to 93.00 and 91.00.

The US dollar index has reached the Fibonacci 0.618 retracement of the downswing between 97.37 and 95.00 level around 96.50-60 mark now. The high probability remains for a bearish turn from here as bears remain inclined to hold prices below 97.37 levels. A break below 95.60 and 95.00 will confirm and accelerate lower.

Note that the US dollar index has now carved its potential Right Shoulder within the Head and Shoulder pattern as discussed earlier. The Head is at 97.37 while the Left Shoulder is around 96.60. The Neckline is seen at 95.00. A break lower will bring back bears into play. Potential remains for a drag below 89.20 in the coming weeks.

Trading plan:

Potential drop below 91.00 against 98.00

Good luck!