Technical analysis on USDX for May 14, 2018

The Dollar index reversed as expected and made an important top last week. Price is moving lower at least for a correction of the rise from 89.23. Short-term trend has changed to bearish as the price is expected to move at least towards the 38% Fibonacci retracement at 91.85.

The Dollar index is pulling back. Short-term trend is bearish as the price is making lower lows and lower highs. The Dollar index has important daily support at 91.85 where we find the 38% Fibonacci retracement. I expect this target to be achieved maybe even this week. However, there are a lot of chances of a move even towards lower than Fibonacci levels. A bounce and full scale reversal is then expected. The deeper the correction, the less chances of a big upward reversal next. Until then, we remain bearish looking for a move below 92-91.80.

The material has been provided by InstaForex Company – www.instaforex.com

Source:: Technical analysis on USDX for May 14, 2018