Technical outlook:
The US dollar index slipped to 102.85 on Friday before finding support again. The index might have carved a three-wave corrective flat structure from the 104.65 high over the last week as bulls prepare to push prices higher to 105.50 and above. The index is seen to be trading close to 103.20 at this point in writing as bulls prepare to take control from here.
The US dollar index has been producing a larger-degree corrective wave since the 100.50 lows. The index is carving an expanded flat and is in its last wave rally since the 100.34 lows. Furthermore, prices are close to terminating a lower-degree corrective wave before resuming a rise towards 105.50 in the next several trading sessions.
The US dollar index seems to be well supported around the 103.10 mark on the intraday chart and any drop there should meet a bullish bounce. Also note that prices have bounced off the 0.382 Fibonacci level of the recent upswing, passing through the 102.87 level as projected on the H4 chart here. A push through 103.75 will confirm that the bottom is in place and bulls are back in control.
Trading plan:
A potential rally toward 105.50 is expected soon.
Good luck!
