The US dollar index remains weak after breaking below the 61.8% Fibonacci retracement support at 99.70. The trend is bearish and I expect to see a bounce from lower levels around 99. I expect the dollar index to test the important support at 99-98.80.
Red line – resistance Blue lines – bearish channel Yellow lines – price projection The trend is bearish in the short term as the price is trading below both tenkan- and kijun-sen indicators. Oscillators are giving us a warning for a possible bounce but there are not enough divergence signals to convince me that the bounce will come today. I would be more patient and wait for a move lower towards 99. Why 99?
