The US Dollar Index: The Drop Could Be Still Considered As A Pullback
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Technical outlook:
The US dollar index rallied through 104.50 during the New York session on Tuesday as projected before facing resistance. The index has slipped sharply towards the 103.50-60 area as the European sessions opened on Wednesday. The drop could be still considered as a pullback before the bulls are back in control pushing the price towards 105.50 and 107.00 respectively.
The US dollar index might have terminated its larger-degree corrective drop at 103.05 as seen on the 4H chart presented here. It further managed to carve a higher low around 103.12 last week before producing a rally of over 120 points. Ideally, the bulls would keep control and push the instrument through 107.00 at least, provided that 103.05 holds well.
The short-term wave structure could be described as follows. The first leg higher was completed at 104.50 on Tuesday as the second wave retraces back to the 103.50-60 zone. If the above structure holds well, prices would stay above 103.05 and continue pushing higher as the third wave unfolds. Only a break below 103.00 would nullify the above bullish structure.
Trading idea:
Potential bullish move against 102.00
Good luck!
Relevance up to 09:00 UTC+1 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
