The USD Index has turned down sharply in the last few weeks and formed a decisive break out of a corrective channel, which is an important indication of a completed A)-B)-C) advance from September low. We see that as wave four as shown on a daily chart, so based on current breakdown we think that bears can be back and ideally in early stages of a big fifth wave down. That said, be aware of more weakness and keep an eye on current intraday rally that can be corrective while market is below 95.15 area.
USD Index, 4-hour
Below, we also have USD Index and its daily time frame. There we can see that price nicely reversed, away from the trend line which gives us thinking maybe red wave 5) of C is in progress. Well, price can now drop even lower and approach area near 90.00/88.00 region, where various Fibonacci projection levels lay. There, a new low can be found and a new bigger bullish reversal may follow. A breach above 95.15 level would indicate even more upside.