Technical outlook:
The US dollar index seems to have carved a higher low around 100.80 on Tuesday. The index is seen to be trading close to 101.00 at this point in writing as the bulls are producing a bullish reversal candlestick pattern. Ideally, prices should stay above the 100.34 lows and push higher towards 102.50 and up to 103.70 going forward.
The US dollar index is structurally still unfolding a larger-degree Down Gartley and the bulls are inclined to push through 105.50 to complete the pattern. Please note that the potential remains for a push towards 106.50 and 109.00 before the bears are back in control. Immediate resistance is seen around 103.00 and a break higher will confirm and accelerate a rally.
The US dollar index has carved a lower-degree upswing between 100.34 and 101.78. Furthermore, it completed a corrective drop towards 100.80 in the early hours on Tuesday, which is also the Fibonacci 0.618 retracement of the above rally. If the above structure holds well, prices should resume higher from here and push through 102.50 in the near term.
Trading idea:
A potential rally against 100.00
Good luck!
