Black line = support

Blue line = resistance

The index remains inside the upward sloping channel. Short-term support is at 88.50 and short-term resistance is at 88.85. The decline from 89.50, I believe, is corrective and we could see a new higher high towards 91 as per our bullish flag pattern. Bulls, I believe, have not said their last word yet.

On a weekly basis, the Dollar index remains bullish, although, the double top is not a good sign. If at the end of the week we see this red candle much smaller than it is today, it will be a bullish signal implying that bulls continue to support the trend. However, if the week ends with a candle like this, then we should be very carefull for the next week as this could mean the end of the up trend from 79.75.