The Dollar index has broken important support levels and remained in a bearish trend as we have been saying for the last weeks despite a bounce towards 98.50. The longer-term picture remains neutral as price remains trapped inside a big trading range.
The Dollar index has broken the 95.20 low and remained in the bearish trend. In a previous analysis, I mentioned that the rejection at the 98.50 level and the lower high displayed a bad sign and a confirmation of the bearish trend. Only a move above 98.50 would bring bulls back in control of the trend. The index is now heading towards the horizontal support near 93.
In the weekly chart, we can observe that the Dollar index remains inside the trading range where it has been for the past year. Price has broken the upper boundary of the weekly Kumo and it has entered the neutral zone. With the weekly kijun- and tenkan-sen above price, bears are in control of the trend now. Most probable outcome will be a move towards the lower boundary of the Kumo (cloud). This coincides with the lower trading range boundary around 93-92.50.
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