The false breakout of last week has evolved into a full-scale bearish reversal and price has reached the previous low and 61.8% Fibonacci retracement. We are at critical support levels that if broken we could see the 92 level again if not lower.
The Dollar index is trading below the 4-hour Kumo (cloud) resistance and has reached the 61.8% Fibonacci retracement again. A break below it will open the way for a deeper pullback and test of previous lows at 92.
The weekly chart is looking bearish after last week's candle rejection at the weekly Kumo (cloud) resistance. Unless we see a full bullish reversal and break above 96 this week, the trend will continue lower and may push price below 90. Important news this week are focused on the UK Referendum regarding a possible Brexit. Volatility is expected to spike at the end of the week.
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