The Dollar index remains in a bearish oversold trend diverging. As I have said in previous posts, I prefer to be at least neutral at current or lower levels if not bullish as I expect the Dollar index to make a strong bounce soon.
Blue line – resistance
Price is making lower lows and lower highs in the 4-hour chart and trend is clearly bearish. Short-term resistance is at 96.70. A 4-hour close above it will open the way for a backtest of the broken support blue trend line at 96.95.
Blue lines – bearish channel
The Dollar index weekly chart has broken below the weekly cloud. I expect price to reach the lower channel boundary around 96 and bounce towards 98 for a backtest of the broken weekly cloud. I prefer to look for short positions only after a bounce in the Dollar index.
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