Since the breakout from June/July triangle, bearish pressures continue to dominate. Triangle typically consolidation/continuation patterns that revert to previous trend (in this case bearish). Current price action is consistent with this.
Previous supports above 79.0 have given way – next important support levels are 78.33 (Jun2 & 2009 low) and 77.68 (Dec 18 low) [see chart]
Cross-asset trends provides corroborating signals for the time being, SP500 recording new highs for the year (an important close today), commodities broadly turning higher (though short of June’s highs),
Topside levels that could stall projected downmove will be 79.66 first resistance and 80.04.
USD Index Update
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