Hedge Funds have increased short positions on the dollar
FOMC minutes would be vital
Fundamental Analysis
The CFTC data is showing that the short bets are at a record level since 2013. This means there could be more weakness ahead for the dollar index. The weakness in the dollar index is mainly due to the weak economic data and the speculators are betting that the Fed is not going to be hawkish. In the light of this, the upcoming FOMC minutes will have vital importance.
Technical Analysis
Looking at it from a technical perspective, the price did break the 93.77 mark but failed to close above that mark. The most recent candle pattern, Bearish Harami, is indicating that the odds are skewed in favour of downward move. The support that we are looking at is at the 91.51 mark (which is 15 Jan2015 low).
