Dollar Index - Pullback On The Cards

Dollar Index (CMP: 80.6) -  is showing mildly bearish then bullish outlook for the short-term perspective.

The price is moving within the multi month channel setup and the price has reacted exactly to the channel lines in the past (marked with Arrows). Falling wedge pattern breakout has been witnessed few days back, which is a significant bullish trigger. One major corrective leg has ended with falling wedge pattern. Now the Dollar index is in fresh bullish leg. The price has started retracing the earlier fall from the high of 84.83 to the low of 79.13. Golden retracement levels of 38.2% - 50% and 61.8% are placed at 81.33 – 82 and 82.7 levels respectively. 

The price has already retraced slightly more than 38.2% retracement level of last leg which was marked as “wave a”. Now Dollar INDEX is in the middle of “wave b”. The corrective leg could end any where from CMP to 80 levels. Once the falling leg completes then price would head toward 50% & 61.8% retracement levels placed at 82 – 82.7 levels.

Conclusion: US Dollar Index could correct mildly then it will rise towards 82 – 82.7 levels later on.