The Dollar index made new lows yesterday as the Dollar was in the center of selling pressures after remarks made for the fx markets by POTUS Donald Trump. Technically speaking, the decline either ended yesterday or there is small room to the downside left, at least for the short term.
The Dollar index got rejected at the cloud resistance and at the downward sloping trend line. The RSI is diverging. The stochastic is oversold and turning upwards. Price has formed a bullish wedge. Resistance is at 100.80. Breaking above it will open the way for a bounce towards 102.
On a weekly basis I still favor the scenario that the entire upside move is not over and incomplete. However this will change if price overlaps the high of wave 1 at 97.50. Price is still holding above the kijun-sen (yellow line indicator). The deeper the pullback now...the worst for the long-term picture of the index.
The material has been provided by InstaForex Company - www.instaforex.com
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