The US dollar index tried to make a bounce off the 78.6% Fibonacci retracement but came back down to reach a new lower low. A trend remains bearish after breaking below the triangle pattern, which we mentioned in our previous analysis.
Red line - resistance
The US dollar index is trading below the Ichimoku cloud and short-term resistance levels by the kijun-sen (yellow line indicator). The price is moving towards lower lows and lower highs confirming the bearish trend. Resistance is now seen at 94.90. If it gets broken, we should expect a bounce towards 95.60.
Green line - weekly support
The US dollar index weekly candle is entering the zone of the weekly Ichimoku cloud. This is not a good sign for the longer-term trend. Important support is found at 92, and important resistance is seen at 97. The bullish flag pattern remains intact. Longer-term traders should remain neutral and wait for a breakout before opening new position.
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