The Dollar index remains in a bearish trend. There are bullish divergence signals but no trend reversal confirmation yet even in the 4-hour time frame. However bears need to be very cautious as the downward move has reached extension targets.
The Dollar index is trading below both the tenkan- and kijun-sen indicators. Trend is clearly bearish as price continues to make lower lows and lower highs. Short-term resistance is at 94.50. Support is at 93.50.
Blue lines - bearish channel
The downward move that started in early 2017 has now reached the 161.8% extension of the first leg down from 103.70 to 99 in December 2016. A bounce from current levels or from 93 is very possible and bears should be very careful and protect their positions with trailing stops.
