Technical outlook:
US Dollar Index might have carved a meaningful bottom around 92.40/50 levels last week. The index is seen to be trading around 92.90 levels at this point in writing and is expected to rally towards 96.00 levels in the next several weeks. Bottom line is that prices should stay above 91.75 levels going forward. Immediate support is seen at 91.75, while resistance stands intact around 94.75 levels respectively. A push above 93.80 would be encouraging to bulls and confirm that they are back in control. Also note that prices have managed to bounce back from around fibonacci 0.618 retracement of the previous rally between 91.75 and 94.75 levels respectively. Only a break below 91.75 will change the near term bullish outlook for the US Dollar Index.
Trade plan:
Remain long, stop @ 91.75, target @ 96.00
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com