The Dollar index is pulling back as we expected from our latest analysis. As I said around the 98 price level, I’m bearish expecting a pullback towards 96 at least. Price is about to confirm the bearish reversal by exiting the bullish short-term channel.
Blue lines – bullish channel
The Dollar index is breaking out and below the bullish channel. Price is expected to move towards the Ichimoku cloud support between 97 and 96 at least. The oscillators have given us the warning and that is why for the last couple of sessions I remain bearish about the index.
Red lines – trading range
Blue lines -possible price path
The Dollar index is making higher highs and higher lows from the 91.90 low. However the form of the rise does not look impulsive implying that the upward move we are currently in is most probably part of a bigger correction. If this is true, we should pull back below 96. A drop below 96 will increase the chances that the entire rise from 91.90 is corrective and a new low should come.
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