Dollar index (USDX) backs away from surge to above 109.50 seen yesterday

On News Years eve an update here focused on the Dollar index (USDX). That update noted how the broader measure of the dollar had fared extremely well in Q4. The prospect of it replicating that in Q1 this year was also covered and whilst not 100% endorsing such, the prospect was raised. Well, as the first quarter of the New Year gets underway the Dollar index has charged higher and taken out a noted and important technical level covered in that previous update. That is at 108.97 and it represented a 61.8% correction of the entire fall since 2022, to the low seen in 2023 (114.77 to 99.58). The surge above that level yesterday was mostly due to the slide in the EUR/USD and it delivered a rise in the index to 109.53. The index later edged back to close in the US at 109.26.It has dropped back a little more this morning, but so far the 109 handle had held and so has that Fibonacci level just behind it. The next level of real note on the topside from here on is now at 111.19. The USD index is right now at 109.14