Technical outlook:
The US Dollar Index has dropped to a potential support level now, around 94.40/50 levels. Please note that the corrective drop has reached the 50% retracement of the previous rally from 94.10 through 94.90 levels respectively. Also looking at the overall wave structure, the US Dollar Index looks to be carving out its final wave (5) on a larger time frame, as a potential ending diagonal (not shown here). If the above wave count holds to be true, the US Dollar Index should be looking to rally from here and reach above 96.00 levels before turning lower sharply. Please note that the last leg rally would be a thrust rally and push prices very quickly to new highs.
Trading plan:
Remain long with a tight stop below 94.00 and targeting 96.10
Fundamental outlook:
There are no major events left for the rest of the day.
Good luck!
