The Dollar index did not manage to break above 81.30 and 81.50 and continued its negative slope corrective pattern making lower lows and lower highs in the short term. Prices remain inside a short-term downward sloping trend channel, and unless prices break above it, the downward correction could continue towards 80.50.
Prices are being supported as long as they trade inside the green area shown in the chart above. The downward move from the highs is definately not impulsive as the overlapping structure of the decline implies correction. The end of the downward correction will be confirmed once prices break above 81.25. When that happens, we should expect the highs at 81.50 to be challenged.
Prices are taking a downward slope in the daily chart and that puts pressures on the short-term trend. Daily support is found at 80.50 and at 80.15. Resistance is found at 81.40-50. Breaking above that level will confirm the end of the correction and start of a new upward move towards 82.50. We remain neutral in the short term. We will change to long if prices break above 81.30. The longer-term view remains bullish, as long as prices trade above 79 with 84-86 target.
