The US dollar index dropped through the 101.20 lows during the early Asian session on Monday. The index has found some support thereafter and is seen to be trading close to 101.40 at this point in writing. A push above 102.10-20 will confirm that a meaningful bottom is in place and the bulls are back in control. The downside remains limited from here.
The US dollar index has further terminated its larger-degree drop, which started from 114.70, in September 2022. The Fibonacci 1.618 extension has been met at 102.20 as seen on the 4H chart here. A high probability remains for a bullish reversal from the current levels towards 106.50 and 109.50 respectively.
The US dollar index is facing strong resistance at 105.35. A push higher will confirm a further upside and that the bulls are here to remain in control. Near-term resistance is seen around 102.50 and it would be encouraging to see prices break higher. Only a consistent break below 101.00 will void the above-presented bullish scenario.
Trading idea:Potential trend reversal higher against 100.00
Good luck!