The Dollar Index has completed 5 waves down from 80.65 and is now making an upward corrective bounce. Short term trend remains down as long as prices trade below 80.65-70.

Prices have reached the 50% retracement after making a new low as expected near 79.85. If the short-term price action moves above 80.25, then we could see an upward move towards 80.35 or 80.45, where the next two important Fibonacci retracements are. However, it is also very possible that the entire upward move is finished, and a new downward leg is starting with targets near 79. For this to happen, the support at 79.95 should break.

On the daily chart nothing much has changed. The trend remains downward and we should expect to see below the 79 level in the coming weeks as long as it trades below 80.65. If 80.65 is broken upwards, we should expect the move to reach 81.50-82. Concluding, we remain short as long as prices trade below 80.65. We will change to long if prices break that resistance level with the 82 target.