On Friday, the Dollar Index continued to trade lower towards 81,50. Short- and intermediate-term trend remain down. Support is found at 81.50 where the 76.4% Fibonacci retracement is, as shown in the chart below. In the long term our view remains bullish as we believe that this area will mark a low for the Dollar Index.
The decline as shown above remains overlapping and we continue to believe that the correction is near its end. However, we will need to see a break above the downward sloping blue trend line and above the 82 price level as the first sign of bullishness. Short-term resistance level is found at 81.70-82-82.40. Bulls will need to break above those levels in order for our scenario to have chances. Otherwise, the downward drift will continue putting in danger the longer term bullish trend.
The downward sloping channel is still valid as trend remains down. Prices will need to break above the resistance levels we mentioned above in order for the short-term trend to change to up. The intermediate-term trend will change to up if prices break above 83.00. Concluding in the long term we remain bullish and we believe that at least at the 76.4% Fibonacci retracement prices have found a bottom. We still believe that a rebound will come soon and trend will change. We still label the downward move from 84.75 as corrective and trend will soon resume upwards.
The material has been provided by InstaForex Company – www.instaforex.com
On Friday, the Dollar Index continued to trade lower towards 81,50. Short- and intermediate-term trend remain down. Support is found at 81.50 where the 76.4% Fibonacci retracement is, as shown in the chart below. In the long term our view remains bullish as we believe that this area will mark a low for the Dollar Index.
The decline as shown above remains overlapping and we continue to believe that the correction is near its end. However, we will need to see a break above the downward sloping blue trend line and above the 82 price level as the first sign of bullishness. Short-term resistance level is found at 81.70-82-82.40. Bulls will need to break above those levels in order for our scenario to have chances. Otherwise, the downward drift will continue putting in danger the longer term bullish trend.
The downward sloping channel is still valid as trend remains down. Prices will need to break above the resistance levels we mentioned above in order for the short-term trend to change to up. The intermediate-term trend will change to up if prices break above 83.00. Concluding in the long term we remain bullish and we believe that at least at the 76.4% Fibonacci retracement prices have found a bottom. We still believe that a rebound will come soon and trend will change. We still label the downward move from 84.75 as corrective and trend will soon resume upwards.
The material has been provided by InstaForex Company – www.instaforex.com
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