FX.co ★ Trading plan for US dollar index for April 07, 2022

Technical outlook:

The US dollar index is beginning to cut loose on the south side after printing fresh swing highs around 99.71 levels on Wednesday. The index is seen to be trading close to 99.40 level at this point in writing and is expected to resume lower to 97.70 at least in the near term. Bears will be posed to hold prices below 99.71 mark to keep the bearish structure intact.

The US dollar index had rallied to fresh upswing around 99.71 accompanied by a strong bearish divergence on the daily RSI (not shown here). It could be a potential bearish indicator and prices might reverse sharply lower towards 97.70 levels. A break there will confirm that trend has reversed and that bears are back in control.

The US dollar index had earlier dropped between 104.00 and 89.20 mark carving a larger degree meaningful bearish boundary. Furthermore, it has also retraced the above to fibonacci 0.618 level around 99.71 mark. High probability remains for a bearish resumption fro current level as bears are looking to be back in control.

Trading plan:

Potential drop to 97.70 against 100.00

Good luck!