U.S. Dollar Index Suffers More Chart Damage

June U.S. dollar index futures on Monday gapped lower on the daily bar chart and hit a fresh 7.5-month low. A dollar-bearish weekend Group of Seven meeting was a bearish fundamental development for the greenback.

usd_index.gifClick for the larger Chart
The push in June dollar index futures below solid technical support at the January low of 87.40 did produce more serious near-term chart damage to suggest another fresh leg down in prices in the near term. See on the daily bar chart that prices also saw a bearish downside “breakout” from a downtrending channel. The next major downside price objective for the dollar index bears is longer-term technical support at the 86.00 area.
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