The Dollar index continues to trade inside the downward sloping wedge pattern in a tightening range. The price is expected to make new lows below 99 before reversing to the upside. The wave 4 scenario correction is still my preferred one.
Blue lines - expected price movement
Short-term support is at 99.50. If broken expect a test of 99 or even lower. Resistance is found at 100 and 100.70. If resistance it is broken we should expect a back test of the broken wedge and continuation to the upside towards 105.
The Dollar index is near completion of its wave 4, a pullback is expected before resuming its uptrend towards 105. I believe the current pullback is just a pause to the larger bullish trend. Only the rejection at 101.50-102 could cancel my bullish view of 105. On a weekly basis I would expect the price to test below 99 but closes above it or even above 100. I believe this can be a reversal week.
The material has been provided by InstaForex Company - www.instaforex.com
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