US Dollar Index carves a lower high at 97.54 levels!

The US Dollar Index finally tests 97.51 levels as expected yesterday, and carves a lower high at 97.54 levels. It is seen to be trading around 96.65 levels at this point in time, and could be looking to continue lower in acceleration towards 95.00 and 94.00 levels respectively. Please note that the index has produced an engulfing bearish candlestick pattern on the daily chart presented here indicating a potential reversal. Ideally prices should remain below 97.54 levels and broadly below 97.70 for the wave structure to unfold lower. Looking at the wave counts, a lower degree wave i (terminated at 96.00 levels) and wave ii (terminated at 97.54 levels) in place now and wave iii looks to be in progress lower. If the above proposed count holds true, we could see prices dropping towards 96.00 levels at least, and up to 94.00 levels going forward. Also note that structurally a higher degree Wave (C) could be unfolding as an expanded flat or a triangle. Overall, the medium term bearish outlook remains for now.


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