25.01.202307:11 Forex Analysis & Reviews: Trading plan for US dollar index for January 25, 2023

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Technical outlook:

The US dollar index dropped through 104.40 during the early Asian session on Wednesday before finding support again. The index has been oscillating within a contracting triangle since January 18, after hitting the 101.11 low.This could be seen as the last leg potentially before a break higher towards 102.50 and further. The price is looking higher from here soon.

The US dollar index is seen to be trading close to 101.50 at this point in writing as the bulls prepare to come back in control. A push through 102.10-20 will enable DXY to break out of consolidation and open the door towards 102.50 and the 105.35 strong resistance. For the above bullish structure to hold, prices should stay above 101.10 going forward.

The US dollar index seems to have terminated its larger-degree corrective wave, which had begun since the 114.70 high in September last year. If the above structure holds well, the bulls will be poised to push through 105.35 in the near future, followed by 106.50 and 109.50 in the coming weeks. A probability also remains to print a new high above 114.70.

Trading idea:

Potential bullish turn against 100.00

Good luck!

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