Technical outlook:
The US dollar index rose through the 104.25 highs intraday on Friday as the bulls are tightening their grip further towards 104.50 in the near term. The index is seen to be trading close to the intraday high around 104.24 at this point in writing as the bulls remain inclined to test the 104.50-80 handle. A break below 103.30 will confirm a top in place and initiate a pullback.
The US dollar index is currently retracing its earlier larger-degree decline between 114.70 and 100.50. The targets are seen potentially towards 106.50 and 109.50 going forward. A break above resistance at 105.35 will increase the likelihood of the bullish scenario and open the door to 109.50.
The US dollar index might be close to terminating its initial wave higher towards 106.50 or it has already completed at current levels. Either way, a pullback should be underway soon towards 102.00 again as the second wave unfolds. We can expect wave three to rally thereafter and push the price further up to 109.00-50.
Trading idea:
Potential rally against 100.50 to continue
Good luck!
