USD index made a nice pullback recently to around 92.45, finding support and turning back above 96.00, which confirms the fact that retracement from 100.64 was a corrective move. We see now a completed wave IV, so the gains area is expected to continue through the upper side of the channel in September. Ideally, wave V will rally towards 103-106 by the end of the year.
On the 4h chart we can clearly see a strong turn up from 92.50 at the end of August in five waves, which means that the dollar is back on the bullish track. That said, recent downward retracement was temporary, now already completed because of a nice bounce away from 94.20, in the last three trading days. Currently, we see move out of a downward channel, which means that more gains are coming. Price is now also testing a neckline of a head and shoulders pattern where a breakout will put wave (3) in play towards 99 maybe even 100 area.
