Short-term view on the Dollar index.

The Dollar index is trading around 102.13 having made an important low at 101.28. Price is bouncing higher and so far price has retraced 38% of the decline from $104.98. Recent high is at 102.60 and a break above this level would be an important bullish signal.

Black lines - Fibonacci retracements

So far the Dollar index is making higher highs and higher lows in the very short-term. Resistance is at the 38% Fibonacci level. A break above this level will open the way for a move towards the next major Fibonacci level at the 61.8% retracement. We can not say with clarity that the entire counter trend bounce of the decline from 104.98 is over. Traders need to be cautious as another leg higher towards 103 is very possible.