The Dollar index has been rejected at the important resistance we mentioned in our previous analysis at 80.70-81 range. Prices needed to break above that price level for the intermediate-term trend to be challenged. However, bulls were not strong enough to push prices higher. The Dollar index has pulled back inside the downward sloping long term channel. The upward move from 79.75 seems to be just another upward corrective bounce. So the trend turns down again for both short and longer-term.
The Dollar index has re-entered the triangle formation and there is increased probability now to break below 79.75 and test 79. The trend is bearish as long as prices trade below 80.70.
The daily chart shows clearly how prices got rejected below the important resistance level shown in the chart as the red area. In order for the blue target to be achieved, bulls will need to break above the red resistance area. Current trend direction favors bears as prices got rejected and it seems that the downward pressures are not over yet. We should expect prices to challenge 79 as long as 80.70 is not broken upwards.