Technical outlook:

The US dollar index rallied through 114.10 during the New York session on Monday before finding resistance again. The index slippped lower and is seen to be trading close to the 113.40 mark at this point in writing. Prices oscillated within the range of 113.00-114.00 in the last 24 hours, thus raising probabilities for a drop towards 110.00.

The hourly chart presented here also projects a potential drag towards the 110.00-20 mark, the initial support level. Immediate resistance or a top is seen at 114.35 and prices should stay lower to keep the bearish structure intact. A break below 112.90 from here will accelerate a further decline towards 111.90 in the near term.

Going further, a real drop below the 110.17 initial support will confirm that bears are back in control and a deeper correction could be on its way. Only a consistent break above the 114.35 mark from here will bring back bulls into control and nullify the bearish scenario. Watching for prices to break below 112.90 for acceleration lower towards 110.20.

Trading plan:

Preparing for a potential drop towards 110.20 against 114.50

Good luck!