The Dollar index bounced off the cloud support after the CPI report yesterday. Initial reaction was in favor of the Dollar but soon trend reversed lower and price broke below the crucial support of 89.60.
Red line – resistance trend line
The Dollar index broke below the Kumo support once again changing trend to bearish for the short-term. Support at 89.60 broke again yesterday and this was a very bearish signal. Resistance is now at 89.60.
The rejection at the kijun-sen and the daily close below the tenkan-sen yesterday are very bearish signs for the Dollar index. The index is expected to make new lows below the January lows. Target is around 87.50. Trend is bearish.The material has been provided by InstaForex Company – www.instaforex.com