The Dollar index bounced once it touched the lower wegde boundaries but still remains in downtrend. Lower highs is not a good sign for bulls. Short-term trend remains down as the index trades below the Ichimoku cloud and has not broken above the previous high at 79.93.
For the trend to change to up, we will need to see a break above 80.05. Until then we remain bearish with short-term stop 79.93. At 79.80-79.93, we find the Ichimoku cloud resistance and the previous high. If weakness from the Asian markets continues today and if things in Ukraine take an ugly turn, we should expect more dollar strength and possibly a break out above 80.05.
The daily chart continues to be bearish. Trend is down and we are heading towards 79 which is our short-term target. Important long-term price level is 81.40 and 80.50. Unless these two levels are broken, we should expect the downward move to continue towards 75-76.
