US Dollar Index pulls back but bullish outlook remains
The Dollar Index has continued to drift lower following the leg higher after the Fed’s hawkish tones on Wednesday. The price has now come back through the long-term descending trendline and $97.33 support. However, the trend remains in play, and this looks a lot like the previous retracements.
The chart has clearly been respecting the Fibonacci retracements fairly well, and thus the 61.8% retracement ($97.15) could provide some support, just like it did for the last pullback.
Ultimately I remain bullish unless the price moves back below $96.62 and will be looking on lower timeframes for a sign of a reversal higher, where the major points of resistance are at $97.39, $98.01 and $98.61.