The US Dollar started this summer in the positive zone. The first trading day of June, which was June 2nd, the USD index rallied up to 80.60, thereby breaking May's high and then setting a new high at 80.68. The index shows the US Dollar strength against a basket of 6 other major currencies. The common Euro currency accounts for the lion's share of the index.
Still, today's trading session turns out to be bearish for the US Dollar. The index declined from 80.45 down to 80.67 right in advance of the American trading session, Masterforex-V Academy reports.
The major news from the USA is the report on manufacturing orders. The news will be published in a couple of hours after the opening of US exchanges. The report is likely to define the near-term future of the US Dollar index.
Technically, the situation looks as follows, according to the trading experts working for Masterforex-V Academy:
The chart below, courtesy of Masterforex-V Academy, reflects the current state of affairs in the market of the USD index. The mid-term bias is still bullish. There is a bullish sub-wave developed from 80.30 and ended at 80.68 (the mentioned wave is marked blue). The 80,68 high is the point where the price started a bearish reaction. At this point, it exceeded the 50% level of the Fibo retracement grid built on top of the previous upswing and already reached the MF sloping channel.
We can also see hat the price rebounded from the mentioned level of support. The intraday prospects of the USD index will depend on the price reaction to the following levels of support and resistance:
Resistance levels: 80.60 + 80.
Support levels: 80.39, 80.31 and 80.20.
