The Dollar index is trading near its highs but I believe at least a short- to medium-term pullback towards the 100 level is justified before the resumption of the up trend. A common pullback towards the 38% retracement is expected now in the Dollar index.
Green line - short-term support
The Dollar index remains in a bullish short-term trend making higher highs and higher lows. Support is at 102 and if broken we should see a deeper pullback towards 100. Resistance is at 103.50.
Overbought with divergence signs in the oscillators, price should slowly and steadily turn lower over the coming sessions towards the 38% Fibonacci retracement. Longer-term trend remains bullish but a pullback from the 102.80-103.20 area if fully justified. Bulls need to be very cautious. Long-term trend will be in danger only if price breaks below the green trend line support.
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