The Dollar index retraced 76,4% of the previous 5 wave upward move from 80.50. Prices made a downward correction and we should expect soon an upward reversal. The short-term pattern favors the bulls as after the 5 waves up and their downward correction, we should anticipate a new upward 5 wave move towards 81.50 at least.
Short-term resistance is found at 81.15 and short-term support is found at 80.65. The decline is currently in a 3 wave form and this supports our short-term bullish view. Bulls however will need to break above 81.15 to confirm our view in an impulsive pattern.
The daily chart shows how the current sideways consolidation between 81 and 80.50 is near its end. The triangle correction will soon end and prices are expected to start a new move. Breaking below 80.50 could push prices towards 80.15. Breaking above 81.15 could push prices towards the recent highs at 81.50. Breaking above those highs we should expect a move towards 83.
