The US Dollar Index (DXY) rebounded off Thursday’s fresh yearly low, marking a daily bullish engulfment pattern. Reclaiming wave III’s swing low of 76.144 hints of trend exhaustion and has soften the bearish wave count. While it may be premature to call the termination of impulsive weakness, the corrective recovery may extend through the middle of next week. Bullish diverging daily studies could direct dollar bulls back towards 20-day MA resistance near the 77 handle. Meanwhile, the probability of resuming weakness towards the 2009 low remains high while price-action is capped by the 38.2% retracement of the October 27th/November 4th relapse.
