Last week saw the dollar index pushing lower and closing below its November 2010 lows. Early last week our analysis suggested a slight pull back followed by a push lower. We’re now sitting at an important level on the DXY.
Any push lower from this area will lead us to the next support level which sits at 74.10 being November 2009 lows. A pull back towards upper resistance at 77.40 could be possible before the Dollar continues its decline
The weekly timeframe has the next resistance level at 78.90 with there being little in the way between the current price and upper resistance. However a continuation of the fall is looking more likely on the weekly timeframe.
We can also see a succession of lower highs and lower lows suggesting a continuation of the current downtrend we’re in on the dollar. Last week closed just below the previous lower low in our pattern, however a stronger push lower followed by a pull back will give better confirmation that this trend will continue.
Price action at this time is showing little on the DXY and waiting for the support and resistance levels to be broken or held will give a better idea as to where the dollar will be heading in the near future.