We look for lower levels in the Dollar index as the prices are expected to make a downward correction. The upward move from 79 is most probably complete as the current price action has pushed the chart outside of the upward sloping channel.
The dollar index is curently magnetised by the 80.50 support area. We believe that at least a move towards the 38% Fibonacci retracement is very possible. Breaking below 80.38 will confirm that the index is heading lower. As long as prices trade below 80.74 the trend will favor bearish positions with 80.15 target.
The daily chart shows the current price corrective phase we are in. The longer term green trend line was broken upwards and we could soon see a back test of this broken resistance. There are increased chances that the 79 is an important low. However, we remain neutral to bearish, targeting 80.15-80 for the corrective pullback.
