My technical outlook on the USD Index.
Market is flat, Price is bullish. This week price opened just above MM3 resistance. Although I am a USD bull, Im looking for a drop on the Index, firstly because USD is oversold with most of other major currencies and because we are at resistance and I want current high to remain a higher low for some time. Stoch is overbought, turning to the downside this suggests future drop in price.
Market is bullish, Price is flat. At this point technically speaking I would want a double top. I would expect price to retest WM3, then begin with its drop. With price behavior lately I am careful with the USD Index. It might still rally as it is at support now which was previously resistance.
Price opened the day at DM2, 55 EMA served as dynamic support. A drop in price down to 55 EMA suggests a double tops, todays target is DM4(101.27) if price hits the target it would be a double tops suggesting that a drop is most likely.