US Dollar Index: Mixed Signals

The end of October brought a number of mixed technical signals to the US dollar index:

• While I still see a major (long-term) uptrend on this monthly chart
  • the USDX posted what could be viewed as a bearish spike reversal during October
  • indicating it could be set to move into Wave 4 of its major 4-wave uptrend.
• The argument could still be made the secondary (intermediate-term) trend has turned down
  • A move that would be considered Wave 4 of the major uptrend.
  • However, the USDX also posted a bullish outside range last week indicating it could see continued buying interest this coming week.

Ultimately, I still see the USDX moving higher with a major target area between 96.09 and 97.72, the 50% and 61.8% retracement levels of the previous downtrend from 102.99 (March 2020) through the low of 89.20 (January 2021).