The dollar index accelerated higher on Monday, rallying from $95.21 low, where previous week’s steep fall from $97.14 bottomed. Daily candles are forming reversal signal, with daily RSI turning north and slow stochastic reversing deeply in oversold territory. Scenario is also supported by daily MACD bullish divergence. Recovery rally approached pivotal barrier at $95.94 (Fibo 38.2% of $97.14/$95.21 downleg) close above which is needed to confirm and open way for stronger correction. However, overall bearish structure sees limited correction before broader bears resume lower. Extended upticks are expected to remain below strong $96.33/44 resistance zone, consisting of daily Tenkan-sen/Fibo 61.8% of $97.14/$95.21 downleg / Daily Kijun-sen, to keep larger bears intact. Upper breakpoints lay at $98.50 (lower platform, reinforced by weekly Tenkan-sen) and $97.80 (falling daily cloud base).
Res: 95.94; 96.33; 96.44; 96.70
Sup: 95.41; 95.21; 94.66; 94.43
