As expected by our last analysis, the Dollar index has stop its decline and is now making a corrective pull back towards the short-term resistance of 79.75. The decline from 80.70 is most probably complete and the index is making an upward correction. If the hort-term resistance at 80.75 is broken, it will confirm that we are in a corrective wave that could push prices towards 80.05-80.20.
The longer-term trend is downward, and there is no sign of a trend reversal. For the short term, prices are expected to make a corrective move up. The daily chart shows that bears should not be worried about anything as long as prices trade below 80.70.
The slope of both our MA implies that there will most probably be more downside pressure in the Dollar Index. If bulls want to reverse trend to south, then they should first break above the 80.70 high, and then move higher and challenge the 81.70 resistance. Concluding we remain short biased in the long term as long as prices trade below 80.70.
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