Dollar index on monthly time frame has suffered a parallel channel breakdown broadly due to the ongoing bond buying program and other stimulus measures in place to limit the economic damage caused by the pandemic. Global liquidity remains at highs which has caused one of the swiftest rally in risk-on asset classes from the 2020 lows and it is still going strong. In simpler words, more and more money is being printed which is devaluing the respected currencies and this process should ideally continue till the pandemic is over, and the early tapering by the Fed might have to wait since wave 3 of the pandemic has again unleashed another bout of restrictions and lockdowns which will have an impact on the economy directly. So, both fundamentals and technicals suggest a prolonged downside for the dollar.

Snapshot-

-Parallel Channel Breakdown.
-Head and Shoulders Breakdown.
-Rising cases due to wave 3 of the pandemic to keep the stimulus measures intact.
-Rate hikes still far away and it might be pushed even further according to the situation.

It can be sold for the target of 75.5 with a stop loss placed above 97,
Conservatively it should be ideal to sell near the breakdown level or at the retest of the breakdown which will provide optimum gains with very low risk.

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