The Dollar index despite breaking below 80.50 support was not sold off but was instead supported at 80.40. This marginal new low while price is trading again back above 80.50 means that we are still in a corrective pattern that needs time to complete.
The Dollar index is most probably forming a triangle and is supported at 80.40. Price is below the Ichimoku cloud. Short-term resistance is found at 80.70. It is preferred to stay neutral as chosing a side right now will most probably lead to losses. In a corrective phase like the one we are currently in, the best thing to do is to wait in the sidelines before a clear break out gives you a strong signal.
The Dollar index is conoslidating near its highs. Important support is found in the daily chart at 80.25 where the 38% Fibonacci retracement is. Breaking below that level will push price towards the 50% retracement or even the 61.8% retracement. Ichimoku cloud support is far below current prices towards 79.75.
The material has been provided by InstaForex Company - www.instaforex.com
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