The Dollar index is weakening. Price is breaking below support and this is not a good sign. The bounce we were expecting was shallow. If price breaks below 97, we should expect more selling pressures to push the index to new monthly lows.
Blue line- support
The Dollar index has broken below both the tenkan- and kijun-sen indicators. Price is heading towards Kumo (cloud) support at 97.15-97. Breaking below the 4-hour Kumo will turn trend back to bearish and will bring more sellers and push price towards 95-94.
The weekly price action remains inside a bearish channel. Weekly candle got rejected at the lower Kumo (cloud) boundary resistance. This rejection is not a good sign. Bulls need to make a new weekly high to remain in control and to continue to hope for a move towards 98.50-99. The rejection has however brought a new scenario where we see a new weekly low and then reverse.
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