Our analysis for the last few days has noted that the trend remains downward and unless a break above the 80.65 resistance is made, new lows towards 79 are the most possible outcome. The Dollar index has completed 5 waves down from 80.28 to 79.74 and we now expect a pullback towards at least 79.95 and then the continuation of the downtrend towards 79.

Short term resistance is found at 79.95-80 and intermediate-term resistance that could push prices towards 80.50 is the 80.15 price level, where the downward sloping blue trendline is. Short-term support is found at 79.75-79.80 and then below at 79.45-35. Longer-term support is found at 78.88.

The daily chart continues to confirm that the trend is downward and unless prices move above 80.70 the trend is not changing. We remain bearish biased with targets near 79 as long as this trend continues. The longer-term view is bearish as well since prices have broken out and below the upward sloping channel as shown in the chart below.