Technical outlook:
The US dollar index turned lower from a 103.50 high on Monday and printed a 102.78 low early on Tuesday. The index is seen to be trading close to 102.80 at this point in writing as the bulls might be preparing to come back in control. The potential near-term target is seen towards 104.00 and 104.75 as marked on the 4H chart here (Red).
The US dollar index has either completed its first wave between 100.50 and 103.60 or could be near terminating after a push higher one last time through 104.00-75. Near-term resistance is seen at 105.35 as displayed on the chart here and could be taken out as the bulls prepare to push through the lower-degree rally from current levels around 102.80.
The trading instrument is unfolding a larger-degree corrective rally towards 106.50 and up to 109.50 as discussed earlier. The first wave is underway from 100.50 and could terminate close to 105.35. We can expect the second wave to dip lower again before the final rally towards 109.50 could resume.
Trading idea:
Potential rally against 100.00
Good luck!
