The Dollar index bounced yesterday as we expected but remains in a bearish short-term trend with many chances of making a new lower low towards 95 in order to complete the corrective pull back from 97.30.
Blue lines - bearish channel
The Dollar index is trading between the 38% and the 50% retracement levels inside the bearish channel. Price bounced yesterday and I expect a new lower low towards the 61.8% Fibonacci retracement to be seen over the coming sessions.
Resistance is at 95.90-96 and only a daily close above this area could signal a bullish reversal in the short-term trend. In the weekly chart price is testing the kijun- and tenkan-sen support at 95.30. I believe a move towards 95 will complete the pull back and the up trend will resume. Important low at 93 should not break for bulls to keep their hopes alive.The material has been provided by InstaForex Company -
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