US Dollar Index potential bearish reversal through 95.50/96.00

The US Dollar Index has been testing resistance zone between 95.40 and 96.00 levels respectively. Looking at the wave counts (lower degree), it is quite possible that the last wave of expanded flat might have terminated at 95.30/40 levels yesterday. If this holds true, we could see a sharp decline from current price action. As an alternate count, the expanded flat could terminate through 95.50/96.00 zone (above previous high at 95.70 levels earlier). In either case, a potential bearish reversal could resume any moment from the above price levels. Please note that the potential of a sharp rally from 93.90 levels earlier is now looking near to complete. It could be a safe trading strategy to remain/add short positions between 95.50/96.00 levels. A medium term bearish reversal could be on its way soon.


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