The Dollar index remains under pressure after back testing the downward sloping channel breakout level. This back test is a healthy pullback for the bullish scenario but we should see signs of strength for the Dollar soon. If these signs delay, we should expect another round of heavy selling that could push the index towards 93.75.
Orange line = downward sloping channel upper boundary
The Dollar index trades around the 61.8% Fibonacci retracement of the latest rise and this is an important level as trend reversals are usually produced from this Fibonacci retracement. The Dollar index remains below the cloud resistance. The first resistance level is at 94.75 and the next one is at 95.25.
The Dollar index continues to hold above the kijun-sen and above the 38% retracement jn a weekly basis . The trend remains bearish but the overall longer-term trend is bullish. The index is at the level that has high chances of an upward reversal. The trend reversal will be confirmed by a weekly close above 97.20. Bullish target remains above 101. Bearish target is is the 38% retracement if kijun-sen (yellow line) gets broken .
