Forecasting a drop: US dollar index set to plummet to 102.900

The US dollar index dropped 0.9% since Monday and the price dropped below a key support of 104.00 and closed below this level. Currently, the price is making a retracement before dropping further. The market structure is also bearish and the price will possibly drop to the 102.900 support level in the coming days and weeks.

I am expecting the price will likely retrace back to the 104.350 resistance for correction and take out most sellers around the current price before dropping. The 104.350 level is a strong resistance level and there is also a bearish order block with fair value gaps, which indicates the price will drop from that level.

I would recommend selling the dollar index from the 140.350 resistance and my recommended target for this trade is the 102.900 support level.

Fundamentally, the price of the US dollar index will likely remain stable this week and most of the high-impact news is over. However, the price can get volatile when the quarterly GDP growth data is published next Wednesday.
If the data turns out positive the price of the United States dollar index will rise and if the data turns out negative the price of the US dollar will drop.

• DXY dropped below a major support level recently.
• The price of DXY will possibly drop to the 102.900 support area in the coming days.
• Multiple take-profit levels have been added to secure profit along the way.
• The risk-to-reward ratio on this trade is 1:3.
• The entry and stoploss prices have been placed at secure levels with the least probability of getting hit.
• Good luck!

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