Technical Analysis:
US Dollar Index might be preparing to push higher through 93.20 levels in the near term. Bulls are looking poised to take out resistance around 93.40 as Wave 3 continues to rally. Also note that potential remains towards 94.00 and up to 96.00 levels going forward.
US Dollar Index had rallied between 89.20 and 93.40 levels earlier carving a potential leading diagonal labelled as Wave (1) on the chart here. The subsequent drop proved to be corrective A-B-C labelled as Wave (2), where Wave C unfolded as an ending diagonal.
Since Wave (2) termination around 89.55 mark, bulls have remained in control pushing prices towards 92.40 before pulling back. The rally is expected to resume higher and push through 93.10/20 levels, in the next few trading sessions.
US Dollar Index recent wave structure indicates that a larger degree Wave (3) is underway since 89.55, which is expected to terminate above 94.00 levels. Also note that lower degree Waves 1 and 2 are in place around 90.44 and 90.00 levels respectively.
Looks like Wave 3 is progressing higher towards 93.20 as it resumes its lower degree wave v rally soon. The iii of 3rd wave was extended here while wave iv has retraced up to fibonacci 0.382 of wave iii. Most traders might want to remain long from here.
Prepared by
Finacademy Technical Team
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