The Dollar index started an upward bounce from the 76.4% Fibonacci retracement and the 80.40 support area, but it did not manage to break above the downward sloping trend line resistance. The index was rejected at the resistance trend line yesterday and pulled back to its recent lows. Will it make a double bottom at 80.40 or will it break the last low and move towards 80.20?
Short-term support is found at 80.40 and short-term resistance by the downward sloping trend line is found at 80.75. Breaking above 80.75 will push prices towards 81 which is the next short-term resistance. Breaking the 80.40 support will push the index towards the important support at 80.10-20.
The daily chart doesn't show a good picture for bulls. The red downward candle is targeting 80.10-20 and more downside pressures. We are neutral as we are close to important support but trend remains down. We should wait for an upward break out in order to take long positions. Short positions are not favored at these price levels because we are close to important support area.
