US Dollar Index looking bearish

The U.S. Dollar Index is negatively correlated to the euro/U.S. dollar currency pair (EUR/USD), meaning if price is looking higher on the EUR/USD, then we see more upcoming weakness in the U.S. Dollar Index. The chart below shows the first Wave 1 and second Wave 2 completed, so current drop down away from 94.32 area can be Wave 3 ( which is usually the strongest and sharpest wave) that can take price toward the 90.64 area, where Fibonacci projection ratio can offer support and push price into corrective Wave 4, for a minor pullback. This minor pullback can later find resistance near the upper Elliott wave channel line.

USD Index, 4-hour

Below we have chart of the EUR/USD and its price movement. Here, we also see price in the third wave of an impulse, but in a bullish one. So, if EUR/USD goes higher, then the U.S. Dollar Index must go lower.

EUR/USD, 4-hour