The US Dollar Index has made a bearish reversal from the 61.8% retracement as we expected. It has reached the recent low and support in the area of 94.80-94.60. A beak below this level will increase the chances of new intermediate lows bleow 93.10.
The US Dollar Index is below the Ichimoku cloud. Gold was rejected at both the upper cloud boundary and at the 61.8% retracement. Yesterday, we got a bearish signal that warned bulls about it. On the other hand, bears want to break below 94.60 in order to put the level of 93.10 to the test.
The weekly chart remains bearish. Weekly support is at 93.90. If we close below that level this week, we should expect another round of US dollar selling and downward pressures towards 90 and the 50% retraceent.The material has been provided by InstaForex Company - www.instaforex.com