USD index made a nice pullback this summer to around 92.45 where market found support and turned back above 96.00 confirming that the retracement from 100.64 was a corrective move, especially as the first leg was impulsive labeled as wave (1). As such, the move to 93.83 was only temporary and corrective, ideally wave (2) that is now complete so the uptrend is expected to continue within wave (3) above 100.80. A broken trend line this week and a move above wave (X) will be just another confirmation for a stronger USD in the coming weeks.
USD Index, Daily
On the 4h chart, USD index made an impressive rise last week, clearly in an impulsive manner. We see an extended leg from 94.60, knowing such a structure is very common for third waves, so we expect further increase after any pullback. Usually the fourth wave will retrace back to the area of the former wave four, which means that we may see a pullback even to 96.20 this week from where a new turn up may be expected.
USD Index, 4H