The US Dollar Index is heading towards higher highs and higher lows since mid-June. All pullbacks reached the 61.8% retracement levels and buyers stepped in and pushed the index higher. The rend remains bullish and the reversal from 93.50 looks like is a new upward move that will bring the index to new highs. This is the most probable scenario as long as we hold above 95.40.
The weekly chart has clearly broken above the medium-term trendline after testing it at 95.40. The most probable scenario now is the resumption of the up trend as long as we hold above 95.40. Otherwise, if we see a downward reversal, we should expect 93.50 to be challenged and, why not, see a deep decline towards 90.50.