Blue rectangle- resistance
Purple rectangle- target if resistance is broken
The Dollar index got rejected once again at the short-term resistance at 106.60. Price is still below short-term resistance and vulnerable to more downside. So far we have seen the creation of a higher low around 105.66 and 105.93. Bulls need to break above the blue rectangle resistance in order to produce a reversal bullish signal. First target would be the purple rectangle at 107.60. As long as price is below 106.60 bulls remain vulnerable to selling pressures.