The Dollar index tried yesterday to make an upward bounce, but it still remains below resistance levels. The downward sloping wedge is getting narrower every hour. Short-term resistance is found at 79.95. Short-term support is found at 79.60.
The trend remains down and so we remain bearish. Important medium-term resistance is found at 80.20 and medium-term target is found at 79.15. The downward pattern is an overlapping move, but as long as we see lower lows and lower highs, we remain bearish.
The weekly chart above remains bearish in the longer term. With Ichimoku clouds still above the current price, we do not feel that bullish positions are preferred at this point as far as the longer-term technical view of the Dollar index. Only a break above 81.30 could change the longer-term view we have. For the short-term, our bearish view would change if the index breaks above 80.50.
