The US dollar index rallied through the 103.28 highs intraday on Wednesday before hitting mild resistance. The index is seen to be trading close to 103.10 at this point in writing as the bears prepare to drag the price lower towards 102.00 and down to 101.50. On the flip side, a push through 103.45-50 will open the door to test 104.75 as projected on the 4H chart here.
The US dollar index might have terminated its first wave within the corrective rally, which began from the 100.50 lows registered early in February. If correct, prices may drop to 101.50 in the next few trading sessions before rallying further towards 106.50 and up to 109.50 levels. A break above the 105.35 initial resistance will encourage the bulls.
The US dollar index is producing a larger-degree corrective rally, which is projected to terminate towards 106.40 and up to 109.50 levels as projected here. Also, note that the Fibonacci 0.618 retracement of its earlier drop between 114.70 and 100.50 is seen passing through the 109.00-50 area. A high probability remains for a turn lower from there.
Trading idea:Potential rally against 100.
Good luck!