06.06.202307:59 Forex Analysis & Reviews: Trading plan for US dollar index on June 06, 2023

Technical outlook:

The US dollar index slipped to 103.45 intraday on Tuesday, falling in line with our projections discussed earlier. The index is expected to continue consolidating between the trading range of 103.00 to 104.00 for a few more sessions before breaking out higher towards 105.50 to complete the larger-degree corrective pattern.

The US dollar index has been unfolding a larger-degree corrective expanded flat structure since the 100.50 lows earlier. The initial rally towards 105.50 was its first leg, while a drop towards the 100.34 lows was the second wave of the above corrective phase. The index is currently trading within its last-wave rally towards 105.50 to complete the pattern.

The US dollar is also seen to be into its lower-degree final wave after hitting the 104.665 initial target as projected on the daily chart. A potential contracting triangle might be unfolding now. Hence, we should expect the instrument to stay within the above trading range for the next few sessions. Once complete, we should witness a thrust rally towards 105.50.

Trading idea:

A potential rally towards 105.50 in the near term

Good luck!