Technical outlook:
The US dollar index rallied through the 104.80 highs last week before pulling back. The index seems to have found interim support close to 104.00 and is looking ready to turn higher again. Potential near-term targets are projected towards the 105.00-50 area before the rally from 99.14 could terminate and complete.
The US dollar index is producing a larger-degree corrective wave (rally) after printing lows around the 99.00-10 zone earlier. The initial wave is expected to terminate close to the 105.00-50 range before a correction begins to unfold. If prices break below the support trend line and subsequently below 102.50, it would confirm that a top is in place.
Alternatively, if the rally continues to push beyond the 105.00-50 zone, the instrument could push further towards the 109.00 highs before turning lower again. Either way, the US dollar index is looking poised for a rally towards 109.00 from current levels or after dropping through 102.00 going forward. Immediate resistance is seen around 105.00.
Trading idea:
A potential rally towards 105.00-50 to resume soon
Good luck!
