The Dollar index bounced from 79.30 and reached our 79.85 target yesterday only to be rejected by the Ichimoku cloud once again. Strong resistance is found in the 79.90-80 area and bulls find it difficult to break above these levels.
Today I believe it is more probable for the Dollar index to make a pull back down towards 79.50. Short- and long-term trend remains down. The upward bounce from 79.30 could be just a corrective bounce and I feel it is more probable for selling pressures to re-emerge. Breaking below 79.70 I will be more certain that we are heading towards 79.50 and maybe a re-test of the 79.30-.20 support.
In the daily chart the Dollar index has not managed to break any important resistance level. To change long-term trend to up, the index will need to break above 81.50. To change intermediate and short-term trend to up, the Dollar index will need to break above 80.70 and 80 respectively. Currently, the trend remains down. Price is below both the Ichimoku cloud and the trend line coming from 81.30. Breaking below 79.30-.20 is very bearish for the Dollar.
The material has been provided by InstaForex Company - www.instaforex.com
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