As expected, the US Dollar Index stopped its decline yesterday at the previous low and support at 94.70. But today we can observe a new low and a breakdown. This is a bearish sign as the Index has reversed from the 61.8% retracement and got rejected at the cloud resistance. The correction in the US Dollar Index is going to be deeper and a low of 93.10 is going to be in danger. There are increased probabilities of a move below that level and towards 90.
The US Dollar Index is making lower lows and lower highs. The price got rejected at the 61.8% retracement and I warned of the possible reversal from that level. The price got also rejected at the cloud resistance. Now, it is moving towards new lows and this implies more downside to be expected.
The weekly chart is turning bearish and approaching the kijun-sen important support. A weekly close below the kijun-sen will increase the chances of a break below 93.10, which is a low made in early May. A target is around the 50% retracement and the cloud support of the weekly chart. Resistance is at 97-97.80. As long as the price is below that level, bears will be in control.
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