Technical outlook and chart setups:
The US dollar index seems to be testing its previous resistance around 100.20 now. No doubt that the index has been following its support trend line till now but the bearish divergences seen on multiple timeframes(not shown) cannot not be ignored. A drop below the trend-line support could trigger a bearish counter-trend drop, which can result in reaching the levels of 97.80 and 96.00 as well. It is hence recommended to remain flat for now and watch for a break below 99.30. An aggressive trade setup is to initiate short positions with risk above 100.20. Immediate support is seen at 100.20 followed by 98.74 and lower, while resistance is seen at the level of 100.20 (interim) and higher respectively.
Trading recommendations:
Remain flat now or follow the aggressive setup scenario, which implies initiating short positions with stops at 100.40, a target is open.
Good luck!
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