08.02.202308:14 Forex Analysis & Reviews: Trading plan for US dollar index on February 08, 2023

Technical outlook:

The US dollar index rose through the 103.60 high during the New York session on Tuesday before finding resistance. The index dropped over 100 points thereafter to register a low of around 102.63 and is now seen to be trading at about 102.90. The bulls are looking poised to push further toward 104.57 as projected on the 4H chart here in the near term.

The US dollar index is producing a larger-degree corrective way potentially towards 106.50 and 109.40 levels. Within the above rally, the bulls are unfolding the first leg higher towards 104.50 and 105.35 at most. A break above 105.35 will confirm that the bulls are back in control and that there is further upside left. Intraday drops should stay above the 100.50 lows.

The US dollar index bulls are potentially targeting the Fibonacci 0.618 retracement of the entire drop between 114.70 and 100.50 levels, which is passing through the 109.40-50 zone. A high probability remains for a potential trend reversal lower if prices reach there (109.40). Only a drop below 100.50 would nullify the above bullish scenario.

Trading idea:

A potential bullish move against 100.00

Good luck!