Dollar has been struggling in an attempt to break the resistance zone of 97.70-97 for the past five months and this week could be another week where it will fail again.
Looking at the weekly chart of the dollar index as shown above, price rejected the area of 97.00 multiple times in the past few weeks.
If we zoom into the Daily chart of Dollar, we can see a much clearer picture.
As shown on the Daily chart above, price has formed an evening star on the resistance zone a few days ago and a double top, indicating that this will be a potential sell off in the future.
If we look at one of our indicators, the Stochastic RSI specifically, it clearly shows that this area is also oversold, further confirming our sell bias.
With the confluence that we are given, we can expect to see price falling down all the way to 95.00. The 95.00 level is a weekly level and as well as the origin point of the channel formation, thus this will be our target.
Zooming into the 4H, price has broken trend already and is merely forming a double top before it falls down.
Price has broken the trendline and the EMAs have crossed, confirming our sell for this index. It rose after the trendline break to confuse sellers here and tricking buyers into placing long orders.
A pin bar has formed on the top, confirming this as a new swing for the index, and forming the second peak for the double top formation.
Over next several days or weeks, we can expect to see dollar to keep dropping. Our target for this index is 95.00.