As I mentioned in my last analysis, the Dollar index was in danger of a deeper correction towards 95 and lower, and this is what finally happened after the resistance level of 96.50 had been rejected.
The blue line - support
The Dollar index is testing very important trend support at 94.15. The price is also challenging cloud support. Short-term resistance is at 95.10. A bounce towards 96.50 will be possible if the price forms a triangle pattern.
The Dollar index is approaching closely the broken black trend line resistance. Is this a back test of the broken trend line? The cloud rejection at 96.50 was an important bearish signal, and the same was the break below the weekly tenkan- and kijun-sen indicators. Bulls will either step in now and save the index, or an even deeper correction targeting levels below 92 should be expected.
