The US dollar index (USDX) extended its major uptrend to a high of 93.43 during March before closing at 93.20, up 2.28 for the month. With monthly stochastic still bullish and just above the oversold level of 20%,, the USDX looks to have plenty of time and space to the upside, with the long-term upside target range between 94.47 and 97.72. That having been said, the major uptrend would be considered a 5-wave pattern meaning we could soon see a Wave 2 selloff that characteristically tests the previous low. In this case that opens the door to a possible pullback to the January 2021 low of 89.20. The USDX weekly chart is showing an overbought situation that could lead to a reversal pattern over the coming weeks, with a move to a new secondary downtrend considered Wave 2 of the major uptrend. Again, I’m not seeing a secondary reversal at this time, and until we do, the USDX is likely to continue extending Wave 1.