The Dollar index is below the important support at 80.40. As we mentioned in previous analysis, important support was 80.40. Once the upward sloping trend line was broken, prices moved lower towards 80.40 support where the initial decline made a pause. Now trend continues lower as selling pressures have come back. Bulls seem weak and unable to make a considerable upward move.
Short-term trend remains down. Short-term support is found at 80.05. Short-term resistance and pivot point is found at 80.55. As long as the index trades below this level, we should expect 80.05 to be tested.
The second rejection in the 81.50 area that created a double top formation that is very bearish in the longer term. If the Dollar index does not manage to hold above 79, we could have a collapse towards 74-75. For now we should focus on the important support area of 80. Concluding, we remain bearish as long as the index is below 80.60 on a daily close. Target is 80.10.
The material has been provided by InstaForex Company - www.instaforex.com
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