We are still expecting another leg up on the USD Index to complete the bullish cycle from 2011. We think the USD index is now at some very interesting levels near 90.00, strong support from where the uptrend may resume.
Some USD-based currency pairs will form tops or bottoms earlier than others, and potentially signal for upcoming turning points. USDCNH can be one of them; it's a pair that has been in a nice uptrend since 2013; clearly in five waves followed by a three waves set-back to the area of a former wave four. We have seen a nice bounce from that region in the last three weeks which can be important evidence of more upside.
If that's the case then the USD Index may also experience bullish price action by the end of the year, especially if we also consider that "corrective cycle" since 2015 may be near completion based on the past two cycles that ended in 2011 and 2014.
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