FX.co ★ Trading plan for US dollar index for May 09, 2023

Technical outlook:

The US dollar index dropped to the 100.86 low on Monday before finding support. Then, it pulled back higher, keeping the 100.34 swing low intact. The index is seen to be trading around 101.00 at this point of writing as bulls are now looking poised to push through the 102.00 interim resistance. The near-term upside targets are 102.50 and 103.95.

The US dollar index is facing immediate price resistance around the 101.30-35 range; while support is intact at 100.34. A push above 101.30-35 will confirm and accelerate to push through 102.50 in the near term. Only a consistent break below 100.34 will drag prices lower towards the 99.00-50 zone before bulls are back in control.

The US dollar index might be working on a lower degree upswing between 100.34 and 101.78. It is further retraced lower to the Fibonacci 0.786 level seen around 100.70-80 on the 4H chart here. We can observe a bullish bounce now and a push through 101.40 will be encouraging for bulls.

Trading plan:

Potential rally against 100.00

Good luck!