The Dollar index does not make a convincing close below 80.25. The 38% Fibonacci retracement is a big magnet. This price level has held the index price around it for some time now. The Dollar index is in short-term down trend as it makes lower highs and lower lows. Bearish trend will change only if price breaks above 80.70.
The Dollar index is trying to move back above the red trend line that was broken yesterday. Strong short-term resisance is found at 80.30 and short-term support is at 80.10. The index has a negative slope with lower highs. Price is below Ichimoku cloud and below the long-term red trend line.
The Dollar index is staying above the 38% retracement for a long time. Is this forming a base? Support is at 80.15 and resistance, at 80.70. As long as price trades above 80.10, we could see a strong upward reversal. If support at 80.10 fails, we should expect a deeper correction towards the 61.8% retracement at 79.70.
