Technical outlook:
The US dollar index has rallied through 102.30 falling in line with our projections. There is still enough room and upside left before the bears are back in control. The index is seen to be trading close to 102.20 at this point in writing and is expected to produce a slight pullback lower before resuming its rally towards 102.50 and 102.75 as seen on the chart here.
The US dollar index has hit the first Fibonacci extension and surpassed 102.30. Prices could produce a retracement lower towards 101.75 before resuming higher again. Also, note that the 101.80-90 zone is the past resistance-turned-support zone, which is seen to be a strong turning point for the bulls to come back in control.
The US dollar index has very strong support around 100.80, followed by 100.30. Any short-term pullback is now expected to remain well-capped ahead of 100.80. Please note that the medium-term target for the US dollar index is seen towards 105.50 and the 108.00-50 zone to complete the larger-degree pattern.
Trading idea:
A potential rally against 100.30 towards 105.50
Good luck!
