FX.co ★ #USDX analysis for October 23, 2013

The Dollar index ended its upward corrective move yesterday and broke below the short-term trendline. A new low came as expected after the downward break of the support trendline.

The trend remains downward. The index continues to make lower lows and lower highs, and the slope of the Moving averages remains neagative supporting our bearish view. Important support levels are 78.75-79 and important resistance levels are 80.20-70.

The dollar index is currently trying to make an upward bounce that could push towards 79.50 or 79.80. Breaking above 79.95 could start a bigger degree upward correction that could challenge the 80,.0 resistance. Concluding we remain bearish biased and look for another bounce to sell again with new lows as target and 79.95 as stop.