- Dollar index fell for the fifth consecutive day on Thursday.
- The pennant breakdown on the daily chart suggests a continuation of downward move from 102.99.
The dollar index is flashing marginal gains at press time with the US stock futures reporting losses, possibly on renewed trade concerns and sobering comments by Amazon and Apple about the impact of the coronavirus.
However, the path of least resistance is to the downside, as per technical charts. The index, which tracks the value of the greenback against majors, fell for the fifth straight day on Thursday, marking a downside break of the pennant pattern represented by trendlines connecting March 27 and April 14 lows and April 6 and April 24 highs.
The pennant breakdown is supported by bearish readings on the RSI and the MACD and indicates a continuation of the retreat from the March 20 high of 102.99. On the downside, immediate support is seen at 98.27 (March 27 low), which, if violated, would expose the Dec. 31 high of 96.36.
Daily chart
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Trend: Bearish
Technical levels
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