FX.co ★ Trading plan for US dollar index on June 13, 2023

Technical outlook:

The US dollar index dropped to the 102.80 lows intraday on Tuesday, which is a strong Fibonacci 0.382 retracement/support level of the recent upswing between 100.60 and 104.65 as projected on the 4H chart here. The index is trading around the 102.85 mark at this point in writing and is expected to resume its rally towards 105.50 soon.

The US dollar index has been unfolding a larger-degree corrective wave since the 100.50 lows as discussed earlier. The expanded flat structure is in its last leg rally and is projected to push the price through 105.50 at least to complete the pattern. Also, note that potential remains for a push through 108.00-109.00, which is the Fibonacci 0.618 retracement of the earlier drop.

The US dollar index seems to have just completed a lower-degree counter-trend drop at around 102.80. A strong bullish reversal can be expected from here and a break above 103.30 will confirm that the bulls are back in control. Watch out for the final wave higher to push through 105.50 at least from current levels soon.

Trading idea:

A potential rally through 105.50 soon

Good luck!