A look at the technical aspects:
Friday’s Asian market session saw the US dollar index slip through the 102.63 low, testing the previous swing low of 102.57. Despite this, the bulls still remain in control of the above price support, implying a potential quick bullish recovery in the near future. As of now, the index is trading close to 102.80, showing that the bulls are ready for a comeback.
It is possible that the US dollar index has stopped its descent that began in September 2022, with a bottom created at 102.55, near the Fibonacci 1.618 extension at 102.30 as seen on the 4H chart. If this pattern is valid, a sharp rally likely will transpire to the 110.00 level in the upcoming trading periods.
The US dollar index is up against a wall at 105.35, while support is there at the 102.00-30 area. The RSI is additionally exhibiting bullish divergence on multiple timeframes (not featured today) which helps make the case for a bullish turn from the present position. Only a steady and definitive crack below 102.30 would negate the bullish outlook.
An Investment Proposal:
This is an idea for trading which involves taking into account potential benefits and risks.
There has been talk of a possible rally against the 101.50 mark.
Best wishes for success!