The US dollar index broke support yesterday after backtesting resistance at 99.50. Bulls are vulnerable here as there are a lot of chances to see a deeper correction towards at least 97. For now, bulls are still in control as the price is above 99 again holding cloud support.
Red lines - bearish divergence
The US dollar index is above the cloud thus bulls are still in control. The bullish channel is broken. Support is found at 99, so a daily close below that level will open the way to a deeper correction. Short-term levels are oversold, so we could see another bounce towards 99.50 today.
The US dollar index broke below the red TL support but is trading back above it now. A lower low relative to yesterday will open the way to a push lower towards the green area shown in the daily chart above. The levels of 97.50-97 are my target area in the short term.
