Technical analysis of USDX for October 19, 2017

As expected, the US dollar index reversed lower after being rejected at the 61.8% Fibonacci retracement resistance. The entire upward bounce should be in and a lower high is the bearish sign we were expecting.

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Blue lines - bullish channel

The Dollar index has broken out and below the bullish channel. This is the first bearish sign. Price got rejected at the 61.8% Fibonacci retracement and is trying to break below Kumo (cloud) support. This is the second bearish sign. The short-term support lies at 93.25. Resistance is at 93.50 and the next one at 93.71.

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Black lines - weekly bearish channel

Blue lines - short-term bullish channel

The dollar index remains in a medium-term bearish trend inside the bearish channel. Price got rejected a couple weeks back at the upper channel boundary. However, the price remains inside the short-term bullish channel. A break below 92.50 will confirm our bearish scenario that the next leg down towards 90 has started.

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