The Dollar index has made a new low relative to the low made in March and has also broken the H&S neckline support giving a strong sell signal. With the FOMC tonight we advice all traders to be cautious. The US dollar remains weak and we could see a deeper correction towards 93 according to the H&S pattern.
The Dollar index remains ina bearish trend in the short-term and may enter a medium-term bearish trend. The H&S neckline is broken. The price is below the kijun- and tenkan-sen and the cloud. It is makinf lower lows and lower highs. Important resistance is at 97 and at 97.80. Target for the H&S pattern is at 93.
The weekly chart is bearish as the price has broken below the tenkan-sen and price is heading towards the yellow line of kijun-sen at 93. Trend is bearish and this is a bigger level of downward correction that has just started. Cancellation of this bearish scenario comes only if the price breaks above 98.70. So, bulls need to be very cautious as things do not look good for the dollar. Will the Fed step in to support it? We will find out tonight.