For most of 2015 and 2016, the U.S. Dollar Index was trading in a range between the 93 support and 100 resistance. The Dollar Index is now approaching its old 93 support level that should help determine whether there will be a bounce from here or a further breakdown. A convincing break below this 93 support level increases the chances of further downside (assuming no false breakdown, of course). There have been notable rallies the last several times the hedgers built similar bullish positions in the U.S. Dollar Index. Finviz.comFor now, traders should watch how the U.S. Dollar Index acts at the 93 support level (whether a bounce occurs or if there is a convincing breakdown).

Source: Forbes July 31, 2017 03:11 UTC