The Dollar index broke below support of 89.80 yesterday and is now testing the lower cloud boundary in the 4-hour chart. Trend has changed from bullish to neutral and is very close to turning bearish.
After being rejected at the resistance of the 38% Fibonacci retracement, the Dollar index is making lower lows and lower highs in the 4 hour chart. Price has broken below all short-term support levels we mentioned and is now testing the cloud support. Resistance is at 89.75 and bulls will need to at least break above this level soon.
On a daily basis the Dollar index is trading just above the daily kijun-sen support. Bulls want to see buyers step in now and push the index higher. They do not want to see a daily close below the kijun-sen. With price still below the daily cloud, trend remains bearish. Strong resistance is at 90.40 This is the first important obstacle bulls must overcome. Until then, bears are in control.
