FX.co ★ Bearish pattern in the Dollar index

The Dollar index might be forming a bearish Head and Shoulders pattern. Current price position should be on the right shoulder. The important support neckline is at 97.30 while important resistance is found at 97.80.

Green line - neckline support

Blue triangles - shoulders

Blue lines - Head

The Dollar index has short-term resistance at 97.80 and next at 98.45. Support is at 97.30 while now it is trading at 97.42. If support fails to hold we should expect the Dollar index to move lower towards 96.30 or even lower. Bulls need to be careful if support fails to hold. This pattern is invalidated if we break above 97.80 area.