Technical outlook:
The US dollar index is trading within a tight range between 105.30 and 105.60 for the last two trading sessions. The index is expected to break out during the New York Session or early next week as the range is only 30 points. It is seen to be trading close to 105.55 at this point in writing as the bears aim to hit one more low around 104.30 soon.
The US dollar index is unfolding its last sub-wave lower towards 104.30, after reversing from the 112.75 highs earlier. The previous lower top was also carved at 107.40 early this week, which is also the Fibonacci 0.382 retracement of the previous downswing. A push below 105.20 will confirm and accelerate a decline lower towards 104.30 at least.
The US dollar index would also complete its larger-degree corrective drop, which began from 114.67 earlier. A print below 104.90 would complete the minimum requirement for terminating the pattern so that the bulls might be looking to come back in control thereafter. Only a break above 107.40 from the current levels will nullify the last bearish wave.
Trading idea:
Potential drop to 104.30 against 107.50. Then higher.
Good luck!
