The Dolllar index as it was mentioned yesterday is at an important pivotal point that could decide long-term trend. The 80 price level is very important and that is why during the last weeks we saw a battle of bulls and bears around this area with a tight price range of 79.70 and 80.60.
This can be clearly seen in the weekly chart above. The upward sloping trend line from 2011 is support. The downward sloping trend line from June 2013 is resistance. The price range of 79-80 is support whereas the price range of 80.50-81.50 is resistance.
Short-term trend is down as there is a lower lows and lower highs pattern as shown in the 4 hour chart above. The Dollar index is back testing the broken red trend line but the important resistance trend line is the one coming from 81.30 to 80.50. We remain bearish as long as the index remains below 80.60.
The material has been provided by InstaForex Company - www.instaforex.com
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