The Dollar Index remains in downtrend. The bearish flag target as mentioned in previous analysis is at the low 79s. This target is very close as the latest low is at 79.40. The trend is down as lower lows and lower highs are being formed. Short-term resistance is found at 80.15. Short-term support is at 79.
Bulls do not seem to have enough power to reverse trend so we remain bearish. Every upward bounce is met by more selling pressures and a new low. It is important for bears to keep an eye to the 80.15-30 level. Breaking above this resistance trend line level could be the early signs of a bigger trend reversal.
The weekly chart, however, is not good for the dollar bulls. The upward sloping trend line is broken and that confirms our bearish flag pattern towards 79. If support at 78.80 is broken, we could see a downward acceleration towards 75. Trend on a weekly level is down as the index remains below the Ichimoku cloud and is breaking support levels. A weekly close above 80.50 could reverse trend.
The material has been provided by InstaForex Company - www.instaforex.com
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