The chart we are analyzing is the US Dollar Index (Monthly) going back 30 years.
Pay close attention to the solid blue measured move as that represents the largest correction since the Dollar's bull run in 2008.
Additionally, if you go back beyond 2008, you will see that the 'solid blue arrow' has been very harmonic, representing almost every move lower. The other arrows are simply harmonics of the blue. Additionally, notice the 14 period RSI. We are approaching/at a VERY key support level on the RSI. Finally, we hit the .382 from the USD all time low and have a classic polarity play all at the same level.
Technically, the bounce in the USD dollar makes sense.
Is this the beginning of a move higher for the USD or a "dead cat bounce?" Time will tell. The 'monthly' candle coming into this level is big and w/ a lot of volume - this warns this level will give away, eventually. And, right below it, is a projection target at 95.
In this 'new world order' (debatable) currency flows are everything. Pay attention to the USD and the heavyweights out there - the Pounds, the Swissy, the Yen and the Euro.
