Bearish Bias for the USDOLLAR IndexLooking at the US Dollar Index, it seems relatively obvious which bias has been playing out for the past year. Ever since the beginning of coronavirus, the US dollar has been weakening by the week. And there seems to be no reason to think that's going to change anytime soon. On the larger timeframes, we could see clear bearish rejection off of a significant resistance level placed on the daily timeframe. With this bearish impulse taking place, we've created a downtrend channel on the lower timeframes.
Looking on the H4, we have clearly identified both a non-horizontal support and resistance level. We could notice that price is currently headed towards the bottom of the channel. If sellers manage to bring price below the current support level it's sitting at, this pair could have some more bearish movement before we see a correction wave towards the upside. Take home point to apply in the markets, USD strength seems weak.
