Early signs of basing are noted around the important 1.3000 level although the multi-month reversal pattern and recent DeMark™ exhaustion signal still weigh.
A decisive close below 1.3000 (psychological support) is required to unlock the important multi-month reversal pattern into 1.2625 (16 Jan swing low).
Meanwhile, only a sustained daily close back above 1.3460 puts this scenario on hold for a potential recovery into our upside target zone at 1.3502 (200-day average).
Inversely, the USD Index is still holding its latest rebound from key support at 78.66/10 (04 March low/TD Level), which was coupled with a recent DeMark™ buy signal.
Expect this level to act as one of the last points of defence for a re-launch of the greenback's recovery which is still part of the bullish cycle into 80.73 (15th March high) and 81.78 (13th Jan swing/12 month high).
Daily Technical Report
