The Dollar index is weaker at the start of the week. Price has made a short-term top at least for now at the long-term 61.8% Fibonacci retracement resistance at 102. A correction has started. This pullback is justified and I have been warning Dollar bulls for quite some time to raise their stops.
The Dollar index had broken the black line support and back tested it on Friday only to get rejected. Price is below the Ichimoku cloud support in the 1 hour chart. Short-term trend is bearish. Support is at 99.90 and resistance at 101.50.
The Dollar index is reversing off the long-term 61.8% Fibonacci retracement. Resistance at that level is very strong. Combined with the bearish divergence in the stochastic oscillator, a pull back is justified and could bring price even towards 97-96 area again. This is the most important support level for Dollar bulls. A break below 96 will cancel any bullish scenario and increase chances for a deep decline towards 90. Bulls need to be very cautious.
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