The US dollar index has reversed as expected, although it still has the potential to make one more new higher high closer to 100 before reversing. With Non-Farm Payrolls on Friday, guessing where the dollar is heading is very difficult. The best thing to do is to wait and trade after the Friday announcement.

Blue line - trend-line support

The US dollar index has almost reached the 78.6% Fibonacci retracement and reversed. However, the price remains above the 4-hour cloud support and above the blue trend line. As long as we are above the 98 level, we could expect a move higher towards 100.

On the daily chart, the US dollar index is fully supported by the Ichimoku cloud and trades above both the tenkan-sen and kijun-sen indicators. The price is making higher highs and higher lows. A daily close below 98.80 will be the first sign of a bearish reversal. If this happens, then we should find support at 97.