The US dollar index rose through the 110.62 highs intraday on Thursday after having found support around 109.00 early this week. The index has resumed its much-awaited pullback and is now seen to be trading close to 110.50. The bulls are still looking inclined to push towards 111.30 before giving in to the bears as the counter-trend is unfolding.
The US dollar index might be still developing its last leg lower towards 107.00 levels before terminating its corrective drop. The correction, which began from 114.67 earlier, might be unfolding as a complex structure, more as a combination. Immediate resistance is seen at 112.65, followed by 113.65 and 114.65; while support is at about 107.50 as marked on the 4H chart here.
The US dollar index has carved its recent downswing between 112.65 and 109.00 in the previous sessions. The bulls are now retracing towards 111.30, which is also the Fibonacci 0.618 retracement of the above drop. The instrument could resume lower thereafter and decline towards 107.00 and beyond in the next few trading sessions.
Trading idea:Potential drop towards 107.00 against 112.65
Good luck!