The USD reversed strongly to the upside last week, with price on USD Index breaking out of a downward channel. This would be an important sign for a change in trend, even if just temporary.
For the next few days, maybe even weeks we will be tracking a minimum three wave rally up on the USD index which means that EUR, GBP, AUD and other currencies will probably further depreciate.
 
So with a bullish view on the USD Index we are bearish on the EURUSD and are interested in short opportunities. However, we need a corrective retracement on the intraday basis before we may consider any shorts.
On the latest structure we suspect that prices accomplished a decline in red wave iii) so the current bounce is ideally part of a red wave iv) that may retrace even back to 1.3570. We could be looking for shorts from there but only if the current rise will unfold in three legs.
 
