The US dollar closed lower against the G10 currencies on Thursday. The level to watch in USDX is 97.00-96.90. The area includes the 200-DMA and 50-WMA and also its 38.0 fib reaction of 93.65-99.19. So all in, a fairy thick congestion area.
Breaking below the level would increase the chances of continuing down towards 96.00 and 95.70 levels.
Watch how price action develops around 97.00-96.90.
The index has been moving lower for three straight weeks and off more than 2.0% from Sep-Oct highs. We have not seen such a significant correction in 2019. The last two significant corrections happened for four weeks in December 2018 and seven weeks between Dec 2017-Jan 2018.
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It is important to always keep in mind the risks involved in trading with leveraged instruments.
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