09.02.202306:23 Forex Analysis & Reviews: Trading plan for US dollar index on February 09, 2023

Technical outlook:

The US dollar index has rallied through 103.00 after finding support around 102.60 on Wednesday. The index is seen to be trading close to 103.00 at this time in writing as the bulls prepare to push through 104.50-60 and up to 105.35. They might have some more steam left to target the initial resistance at 105.35 before pulling back.

Earlier, the US dollar index terminated its larger-degree decline at 100.50 before finding support again. Prices have rallied through 103.60 since then, indicating that a similar-degree corrective rally is underway. The initial target is seen towards 105.35, followed by 109.50 to complete the correction. The bears might be looking to come back in control thereafter (109.50).

The US dollar index is looking close to completing its initial rally of a much deeper correction around 105.00 in the near term. We can expect the price to pull back lower thereafter before it produces its final thrust rally towards 109.50 going forward. Also, note that 109.50 is the Fibonacci 0.618 retracement of the entire drop between 114.70 and 100.50 levels respectively.

Trading idea:

Potential rally against 100.00

Good luck!