The Dollar Index remains above the 50% Fibonacii retracement support and is trying to break above the short-term resistance levels at 80.05-80.20. If it manages to break above that levels, then it will most probably push towards 80.50-65.
The move from the lows is a 5 wave complete movement with a three wave pull back. We expect prices to push upwards to new short-term highs. After 5 waves up and three waves down, according to elliott wave theory we should anticipate at least 5 more waves up. Our target is 80.60-70 with 79.65 stop.
In the daily chart we observe nothing more but a small pause to the bigger downward trend. The longer-term trend remains downward and there is no strong reverse signal in order to make us believe there is something about to change for the longer term. So any upward opportunity we see is labeled as corrective, because we believe the main trend is downward.
Concluding, short-term support at 70.65-80 may help the index to try and push upwards as the short-term price patterns show impulsiveness. We believe short-term opportunities are on the upside and we should trade with extreme caution as the longer-term trend is still downward.
The material has been provided by InstaForex Company - www.instaforex.com
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