USD Index Bearish

This week has started off slow for the Dollar index after last week's bullish push from the bullish NFP data release. Yesterday the index has formed a very small candle which does show selling pressure.

Market sentiment is predominantly still overall bearish unless the market structure changes and we see a break of the descending trendline to the upside. Market structure is very important and shows clearly whether a market is moving bullish or bearish.

With price in the Dollar index showing lower highs and lower lows this is bearish market structure. If price does continue with the bearish momentum and continue from the 61.8% Fibonacci retracement then we will look for a potential new lower low at the confluence level of -61.8% area - 11980.

Chart: USD Index