FX.co ★ Trading plan for US dollar index on June 21, 2023

Technical outlook:

The US dollar index slipped to 101.70 over the past week before the bulls were back in control. They managed to push the index higher through 102.27 before pulling back to 102.20 at this point in writing. The index could correct further towards 101.85-90 intraday before turning higher towards the 103.50-60 levels at least. Ideally, the support around 100.80 should hold well.

The US dollar index is still working on a larger-degree corrective wave, which has the potential to push the instrument through the 105.00 mark. On the flip side, if a triangle is unfolding, the index would still rally up to 103.50 to terminate its last wave before turning lower again. In either case, the bulls are expected to remain in control going forward.

The US dollar index is working upon the recent upswing between 100.80 and 104.25 as seen on the 4H chart here. Prices have corrected lower through the Fibonacci 0.618 retracement of the above rally alongside the past resistance-turned-support around the 101.60-70 zone. A high probability remains for a rally to come into being from the current levels.

Trading idea:

A potential rally through 103.50 and up to 105.50 to resume soon.

Good luck!