The Dollar index did not manage yesteray to break above resistance an pulled back down towards the 76,4% Fibonacci retracement. The double bottom could prove bullish if the reversal pushes prices above 81.
Short-term support is found at 80.65-55 and short-term resistance is found at 81 and then at 81.35. The decline is not impulsive, thus we label it as corrective. The decline has an overlapping price pattern and that is why we see it as corrective to the bigger upward trend in the 1-hour chart. Bulls will need to break above 81.35 in order for bullish momentum to come back. Bears, on the other hand, will need to break below 80.50.
The daily chart confirms the larger sideways trend that is currently in force. We will wait for this sideways triangle to end, before we take actions. This is the safest and easiest strategy to follow. Moreover, we could also take positions in favor of the price levels relative to the resistance and support levels. If prices reach the lower boundaries of the triangle, then we could buy as long as prices trade above support. If prices reach the upper boundaries of the triangle, then we can go short with the resistance level as a stop reverse. This is riskier and also brings the possibilities of a loss.
