A 4H chart view has been presented here for the US Dollar Index to have a medium-term outlook into its wave structure. The US Dollar has managed to reach almost 97.00 levels as prices nearly complete its 3-wave corrective rally that began from 95.90 levels earlier. Also note that the US Dollar Index is stalling at a fibonacci 0.786 resistance levels of its previous drop between 97.36 through 95.90 levels respectively. A bearish reversal here would resume a multi-week drop that could potentially reach up to 94.00 levels and also further below. Overall wave structure is looking like an impulse drop (1) followed by a corrective 3-waves rally labelled as (2). The next move should be a 5-wave drop lower as wave (3) provided prices should stay below 97.30/40 levels. Immediate price resistance is at 97.36, while support is at 96.70 levels respectively.
Remain short now, with risk above 97.40 levels, target is open.
Good luck!The material has been provided by InstaForex Company - www.instaforex.com