The Dollar Index was rejected at the first resistance level we noted yesterday at 82. The downward sloping channel was not broken and prices got rejected at resistance. This is a sign of weakness and we expect the low at 81.50 to be put to the test. Short-term trend remains down as long as prices trade below 82.35. Intermediate-term trend remains down as long as prices trade below 83.45.
Prices have risen from 81.50 in an overlapping pattern not giving us any bullish sign as this pattern is corrective to the dominant short term downtrend. We believe that as long as prices trade below 82 we will test and break below 81.50 towards 81.
In the daily chart we continue to trade between the 61.8% and 76.4% Fibonacci retracements but there is no clear upward impulsive move to mark the start of the reversal. Long-term trend may remain up as long as prices trade above 80, but breaking below 81.50 will put the longer term supports to the test. We remain neutral waiting for the first signals of a trend reversal that is very possible around this price area of 81.50.
