Dollar Index has made a higher high yesterday at 83.46 but the upward move from 82.40 is far from being labeled as impulsive. The upward move has an overlapping pattern, something that is typical for corrective patterns. This upward move from the 50% Fibonacci retracement is most probably part of the correction and the down trend is still in control.
The upward sloping trend line supporting the short-term trend has been broken. We believe that another leg down with new lower lows will be realised soon. Unless prices manage to move back above the upward sloping blue trend line, we expect prices to continue lower for the final 3rd part of the correction that started at 84.75. The new low is expected to reach the next support that is found at the 61.8% Fibonacci retracement as shown below.
I believe that support at the 61.8% retracement will be the bottom for this downward move from 84.75. However, if prices manage to break above yesterday's high at 83.44 we could rise up to the 83.75 level. Short-term resistance is found at 83.05 and then 83.16 before the high at 83.44. Short-term support is found at 82.77 and 82.61 before 82.10.
