Technical outlook:
The US dollar index continues to drift sideways between 103.40 and 104.30 levels for the last few trading sessions. The index is seen to be trading just below the 104.00 mark at this point in writing as bulls are looking poised to break higher towards 105.50 and 107.00 in the near term. Prices might have carved a meaningful bottom around 103.00 for now.
The US dollar index might have completed its corrective drop, which began from 114.70 earlier. The three-wave decline looks complete at the 103.00 mark as seen on the 4H chart setup. If the above structure holds well, the next major move will be higher from here, towards 114.70 and further. A break above 107.00 will add further confidence to the existing bullish scenario.
Alternatively, the index might produce at least a corrective rally towards the 110.00-50 range before turning lower again. Either way, the near-term outlook remains bullish against the 103.00 mark. A push above 104.40 will confirm a break of its sideways range as bulls regain control. Only a consistent break below 103.00 will nullify the bullish scenario.
Trading plan:
Potential rally against 103.00.
Good luck!
