The Dollar index gapped down today and is now trading around the 81 support. Prices have pulled back inside of the downward sloping trendline. Support is now found at the 76,4% of Fibonacci retracement. If the 80.76 low is broken, it will be a bad sign for bulls. Moreover, prices, last week, broke above the trendline, there was no other bullish signal given in order to support the first one. The trend remained downward and the result of this was today's gap down. This could vbe an exhaustion gap to end the downward move. Stop for bulls is the 80.76 low.
In the daily chart, prices seem to bel in downward trend, but they are now challenging the longer-term upward sloping channel. This is important long-term support area and we should anticipate a trend reversal. Formation of bottom should take some time and, therefore, we should not be impatient. Concluding, the trend remains descending. We give high probability to see a trend reversal around these price levels. A bullish signal will be given if prices break above the resistance level of 81.70.
The material has been provided by InstaForex Company - www.instaforex.com
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