The US Dollar Index pulled back after the impulsive move from 93.10 to 97.80. Yesterday's breakdown canceled the bullish scenario of another short-term new high as support at 96.70 was broken. The correction was deep and I expect reversal from the 61.8% retracement.
The US Dollar Index has been rising impulsively and has made a three wave corrective pullback towards the 50% retracement. I will not be surprised to see a deeper pullback towards the 61.8% retracement.
In the daily chart, the US Dollar Index got rejected at the Ichimoku cloud but found support at the kijun-sen price level. Reversal to the upside from current levels will be a very bullish signal. New highs above 97.80 will also be a very bullish signal. I will remain bullish in the long term as long as the price is above 93.10.
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