Technical outlook:
The US Dollar Index has dropped lower as expected and discussed earlier. It is seen to be trading close to 97.00 levels at this point in writing. Traders are expected to book short-term profits on short positions taken earlier. Looking into the wave structure, the rally from 95.80 through 97.60 levels turned out to be in 5 waves, hence another high above 97.60 remains a high probability. It remains to be seen if prices manage to push through higher levels from current price action or from 96.50 levels. Interim resistance is seen at 97.60 for now while support is seen strong at 96.00 levels respectively. Aggressive traders may want to remain short but please note to bring stop loss close to break even levels.
Trading plan:
Aggressive traders remain short, bring stop close to break even.
Conservative traders take profits on short positions and remain flat.
Good luck!
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