Technical outlook:
The US dollar index dropped through the 103.50 lows again intraday on Wednesday before finding support. The index produced a rally towards 104.20 thereafter, as bulls came back strong in control. It is seen to be trading close to the 104.05 levels at this point in writing as bulls prepare for the next near-term target around 105.50 and 107.00 respectively.
The US dollar index has been consolidating within a contracting triangle since printing lows around the 103.00 mark as seen on the 4H chart. Prices did manage to rally through the 104.40 levels before drifting sideways and it looks like the last wave could terminate ahead of the 103.50 mark. Once complete, prices could produce a bullish breakout and a push through 104.50 will be confirmed.
The US dollar index seems to have completed its larger degree corrective drop, which began from the 114.70 levels, around 103.00 mark recently. If the above holds well, prices will stay above 103.00 and continue pushing higher towards 114.70 and beyond. Alternatively, prices could find resistance at 110.00-50 range before reversing lower again.
Trading plan:
Potential rally against 102.00
Good luck!
