The US Dollar keeps losing its value against other major currencies. The USD index declined from 79.48 down to 79.06 during the European trading session. Therefore, the price managed to create another quarterly low after breaking below the lowest level since Q1 2014 set at 79.22.
One of the reasons for the continuing weakness of the American currency is the US trade balance deficit. When coupled with other economic figures, this one is pressing the US Dollar. According to the recent report published today, the deficit increased up to $40,4bn, which is worse than expected ($40bn). At the same time, the report shows that the demand for the American export is down while the import has already increased by 2,1%
USD Index Outlook
According to Masterforex-V Academy, the comprehensive analysis of the H4 chart shows the following picture:
The price has already formed a bearish 3-wave count started from 80.72. The wave count contains the 3rd wave started from 80.01. The mentioned wave also consists of 3 waves of a smaller scale (blue lines). As we can see, the bearish long-term trend is still underway as the price is below the 79.22 low and the 3rd wave is beyond 161,8% of the momentum Fibo grid.
Resistance: 79.38 + 79.60 + 79.80 (87). There is an additional level of resistance represented by an MF sloping channel (the brown line).
