Technical outlook:
The US dollar index slipped back to the 102.75 lows during the Asian session on Wednesday, after having climbed above 103.00 overnight. The index is seen to be trading close to 102.80 at this point in writing as the bulls are looking inclined to hold prices above the 102.30 recent lows. If the structure holds well, the near-term projected target is seen at about 105.35.
The US dollar index has completed its larger-degree corrective drop since hitting the 114.70 high in September 2022. The index has hit a major Fibonacci extension around 102.30 as seen on the 4H timeframe. A high probability remains for a turn higher from current levels, at least towards the 109.00-110.00 zone before deciding on a further direction.
The US dollar is facing immediate resistance at 105.35, while support comes in handy just above 102.00. A push through 105.35 in the near term will confirm that the bulls are back in control and that a major low is in place at 102.30. Even if the bears manage to drag below 102.30, the drop is expected to be shallow before the bulls are back in control.
Trading idea:
Potential rally against 101.50
Good luck!
