The upward move from 79 seems complete as prices have broken outside of the upward sloping channel, and the current price formation seems to be heading downwards as there is weakness in the buying side.
Strength in EURUSD, the major component of the Dollar index, makes the index weaker. Bulls could not manage to make a new higher high yesterday, and a double top was formed at the 80.80-95 area. Prices are heading lower and if 80.50-40 is broken, we should see a downward correction towards 80.15-80.
Resistance is found at 80.75. If prices break above that level, we could see the index move towards 81.10-20, however we believe this scenario is the less probable one. For now, we remain long in the short term, as long as prices stay above 80.50. If 80.50 is broken, we will see at which retracement the index pauses its decline in order to enter long again, as we believe the longer-term trend has changed.
