The Dollar index is making lower lows and lower highs. The short-term trend is down but strong support is found at 80.25 as we have not seen a daily close below that level. Short-term price trend is bearish as the index is below Ichimoku cloud and below the red trend line resistance.
Breaking below 80.20 will be a bearish sign and will most probably push the index towards 80 and below which was our initial target from 80.90. The support area I'm targeting is the 50% retracement as shown in the chart above coloured red. Short-term resistance is found at 80.65 and support at 80.35.
If we see a daily close below 80.25, we should expect the index to reach the 80 level of even 79.90. From 80.90 I've been bearish targeting the pull back that will touch the Ichimoku cloud support before starting a new upward move to new highs.
