US Dollar Index might drop through $89.70

US Dollar Index had rallied through 90.70 mark as expected and discussed earlier. The index might have carved Wave A and B of a corrective A-B-C structure since 91.60 highs earlier.If correct, the index is preparing to drop towards $89.70 levels from here to terminate Wave C of the proposed corrective drop. It would be Wave 2 termination of a complex correction, giving way for a Wave 3 rally towards 94.50 and higher. Alternately, it is also possible that US Dollar Index is heading lower below 89.20 by unfolding 5 waves lower from here. We keep the bullish count intact for now.

Long against 89.20, towards 94.50