The Dollar index has reached our target of 79.75. Support is strong at that level as this is the 61.8% Fibonacci retracement and the Ichimoku cloud support on the daily chart. If the Dollar index is going to reverse, it will be at this level. If this level is breached, then we should expect more downside towards 79.50.
Price is trading sideways. Short-term resistance is found at 79.90. If broken we could see a bounce towards next resistance at 80.05. Strong resistance is found at 80.35 and 80.15 by the Ichimoku cloud and the downward sloping trend line.
The daily chart above shows how price is now at important support levels. It is a good sign that the decline is paused at these levels. This increases the chances of an upward reversal. So bears should be very cautious as we could see an upward reversal soon.
