The US Dollar Index was very weak yesterday as its main component, the EURUSD pair, made an impressive rally. The US Dollar Index completed an impulsive upward move with a complete set of 5 waves. The retracement has already reached the 61.8% retracement and the cloud support.

The US Dollar Index is above the cloud support and is making a bounce from that area. As long as the price is above the cloud, the short-term trend will remain bullish. However a break below the cloud will increase chances for a new lower low below 94.60. Critical short-term support is found at 93.50.

The weekly chart remains in a bearish trend as the price did not manage to break above the blue downward sloping trend-line resistance.The weekly candle is seen around the Ichimoku indicators of tenkan and kijun-sen. A weekly close below 95.20 will be bearish. I still prefer a bearish wave count where we are in a deeper downward correction that will bring the Index to the level of 90.