USD index made a nice pullback recently finding support at around 92.45, turning back above 96.00, and confirming the fact that the retracement from 100.64 was a corrective move. We see now a completed wave IV so gains are expected to continue through the upper side of a channel in September. Ideally, wave V will rally towards 103-106 by the end of the year.
USD Index, Daily
On the 4h chart, USD Index turned sharply up from 92.50 at the end of August, clearly in five waves which means that the dollar is back on a bullish track. That said, recent downward retracement was temporary, now already completed because of a nice bounce last week. We see a move out of a downward channel which means that more gains are coming. Price is now testing a neckline where strong breakout will put wave 3) in play towards 99 maybe even 100 area.
USD Index, 4h
