The Dollar index remains close to its short-term resistance of 86.20 and as long as it does not break above it, we should be very cautious as the downward correction could unfold into a more complex corrective pattern as labeled in todays post. This alternative scenario could bring the Dollar index towards 84 in order to complete the correction from the highs.
Black line= former resistance
Althought the black trend line was broken upwards and price moved above the Ichimoku cloud, I do not see the strength I would expect in order to be more sure that we have seen the end of the correction from 86.70. The Dollar index could be at the final stages of a wave X of a double zig zag formation. If the correction is not over, I expect to see a final push lower towards 84 to complete the correction.
In the daily chart, the Dollar index is breaking out of the bullish flag that gives me target of 90. Price is above the Ichimoku cloud and all ichimoku cloud indicators are bullish with a positive slope. Breaking above 86.20 resistance will confirm that an important low was placed at 84.40 and a new upward move has started. I'm longer-term bullish.
