Technical outlook:
The US dollar index reversed sharply higher after carving a higher low around 100.85 on Tuesday. The index jumped by almost 70 points and approached closely 101.50 before pulling back. It is seen to be trading around 101.30 at this point in writing and is expected to continue its rally further towards 102.50 and up to 105.50 soon.
The US dollar index is on its way to completing the larger-degree Down Gartley corrective rally towards 105.50 and 106.50 respectively. It is now developing its last-leg rally against the 100.34 low, so a break above 103.00 will confirm that the bulls are back in control to push further. Also, note that the potential for the above rally remains up to the 108.00-109.00 zone before the pattern could complete.
The US dollar index remains well supported around 101.00 and a drop there will find the bulls coming back into play. Earlier, the index found support at the Fibonacci 0.618 retracement of the lower-degree upswing (100.34 through 101.80) and bounced higher as seen on the 4H chart. Ideally, prices should now stay above 100.34.
Trading idea:
A potential rally against 100.00
Good luck!
