The Dollar index remains under pressure as EUR and JPY are strengthening against the Dollar. The bearish action from the last week is putting increased pressures against the Dollar and it can be seen easily as there is no real strength to push the index above 88.60. Technically there are many chances that we are starting a deep correction.
Blue line = support
The Dollar index is testing important support at 87.90. The index is making lower lows and lower highs. Price is below the Ichimoku cloud. This is a bearish sign for the index. Confirmation will come if and when we break below 87.90. Next important support is at 87.50.
Red line = weekly support
Since the last week The Dollar index showed us some signs of weakness, and the possibility of a larger trend reversal has dramatically increased. Breaking below support at 87.50 will confirm this scenario and we could see the Dollar index pull back towards 86-84 area at least.
The material has been provided by InstaForex Company - www.instaforex.com
