Dollar is still in downtrend but making a small upward bounce as expected by our last analysis to test the upper boundaries of the downward sloping channel. Trend remains down and it will be very difficult for the bulls to manage and reverse this trend after the sharp spike down after Bernanke's comments last Wednesday.
The prices could continue their upward correction towards the 80.65-70 price level. Trend remains down and it is very possible to see a new lower low towards 79.80-70. The bulls will not only have to break above 80.70-80 channel resistance but will need to overcome 81.45 in order for the short-term trend to reverse upwards.
On the daily chart things are rather unpleasant for the long-term trend. Unless the prices manage to move back above 81.10-20 early next week, chances of seeing 82.50-70 anytime soon will be very slim. The longer it takes to reverse, the less possible it is for this downward move to be fake break down. Concluding, we remain neutral as no good risk/reward opportunity is found.
