FX.co ★ Trading plan for US dollar index on November 22, 2022

Technical outlook:

The US dollar index rose through the 107.60 highs on Monday before finding resistance. The index has pulled back since then and is seen to be trading close to 107.30 at this point in writing. It is safe to assume that the instrument is poised to turn lower towards 104.30 until the price settles below 109.00. We are looking lower in the near term.

The US dollar index has hit a resistance zone around the 107.60-65 mark as seen on the 4H chart here. It has tested the immediate resistance trend line and also the Fibonacci 0.382 retracement of the recent downswing between 110.60 and 104.90. A high probability remains for a bearish turn from here and a decline lower towards 104.30.

The US dollar index has been unfolding a larger-degree corrective wave lower from the 114.67 highs earlier. The corrective drop might have unfolded as a complex structure and could be into its last wave lower towards 104.30 levels. The bulls might be back in control thereafter and push prices higher towards 114.67 and further.

Technical idea:

Potential drop to 104.30 against 109.00

Good luck!