Technical outlook:
The US dollar index dropped through 102.00 on Tuesday as projected and discussed before bouncing back. The index is seen to be trading close to 102.15 at the time of writing as the bulls carved a Morning Star pattern. Ideally, prices will stay above the 101.50 interim support and push through 106.00 in the next few weeks.
The US dollar index is unfolding a larger-degree counter trend rally since printing the 100.50 lows on February 02, 2023. The index rallied through 105.50 thereafter to complete its first leg, which was followed by a corrective decline towards 101.50 to terminate the second leg. If the structure holds well, the last leg is in progress against 100.50.
The US dollar index has further carved its lower-degree first and second waves towards 102.97 and 102.00 levels respectively. Also, note that prices have bounced from just below the Fibonacci 0.618 retracement, which is close to 102.07. Ideally, the index is poised to stay above 101.50 and continue higher towards 104.70 in the near term.
Trading idea:
A potential rally through 106.50 against 100.50
Good luck!
