The US dollar index remains in a short-term down trend and is now in danger of reversing of the longer-term bullish trend. The extended dollar weakness continues and this week will be critical. If this week ends with the index below 97, we should expect a move lower towards 93.
The USD index is now trading below the 61.8% retracement which is important support. The trend is bearish in the short term. The trend changes if we break above 97 which is the first short-term resistance. The cloud resistance at 98.60 is the important resistance level that if broken, will be an important medium-term buy signal.
The weekly chart is getting weaker. The price is testing the tenkan-sen support. If this week closes below 97 we should expect the US dollar index to move towards the kijun-sen over the next weeks towards 93. At the level of 93 we also find the 38% retracement of the entire upward move from 75. So we should not be surprised to see a sharp move lower over the next weeks.
