The Dollar index continues to be weak as prices continue their downward slide. The trend remains downward and prices have now reached the 61.8% Fibonacci retracement. If a reversal happens, then it should be made around this price level and very soon.
Bulls should find support at the 79.90 level and start a reversal after a breakout of the downward sloping channel. Breaking above 80.20 will be a buy signal with 79.90 as stop. Prices will then need more power to break more important resistance levels like 81.
The trend remains downward and we remain neutral. Unless a sign of strength is given we will not enter long positions. The longer- term trend remains downward and this could only change if prices break above 81.50. There will be increased chances of this happening if prices reverse from this level they are currently trading. Otherwise the 79 low will be challenged.
