The Dollar Index has dropped, but this could still be only a temporary one. Making a valid breakout through the immediate obstacles could signal an upside continuation. The Double Top reversal pattern will be activated only after making a new lower low. The DXY Dollar Index price has found support and now is struggling to rebound. A temporary bounce back was somehow expected after the most recent sell-off. However, the pressure is still high, so further drop could signal that the USD could depreciate further versus its rivals in the short term. –Are you interested to learn more about forex bonuses? Check our detailed guide- DXY moves somehow sideways in the short term. However, a larger drop is far from being confirmed, so we cannot exclude a potential growth towards the weekly pivot point (92.727). The index needs a helping hand from the US economy tomorrow to stay higher and increase. As a result, the Retail Sales are expected to drop by 0.2% versus 0.6% growth in June, while the Core Retail Sales indicator could increase by 0.2% in July compared to 1.3% in June. Industrial Production is expected to increase by 0.5% versus 0.4% in the previous reporting period, while the Capacity Utilization Rate could increase from 75.4% to 75.7%. Get FREE Forex Signals Now! DXY Dollar Index price technical analysis: Support to safeguard further losses DXY 4-hour price chart The Dollar Index has found support on the descending pitchfork’s upper median line (UML). However, the weekly pivot point (92.727) and the 150% Fibonacci line are immediate upside obstacles. Technically, only a valid breakout through these levels could announce an important growth and an upside continuation. The 23.6% (92.32) and the S1 (92.26) are seen as support levels. DXY has printed something like a Double Top pattern. –Are you interested to learn more about day trading brokers? Check our detailed guide- Still, the reversal formation is far from being confirmed. Only a new lower low, a valid breakdown below 38.2% retracement level, could activate this pattern. So, it’s premature to talk about this scenario right now and as long as it stays above the upper median line (UML). A temporary consolidation above 92.47 Friday’s low followed by a breakout above the immediate resistance levels could invalidate a deeper drop. Looking to trade forex now? Invest at eToro! Trade Forex Now! 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Saqib Iqbal Saqib Iqbal Saqib Iqbal is a market analyst, prop fund trader and mentor, serving the industry with his analysis and educational content since 2011. The author has great exposure to different financial markets and institutions. He's well-known for his day trading reviews and multiple timeframe analysis. View All Post By Saqib Iqbal Forex News Today: Daily Trading News share Read Next AUD/USD Daily Analysis: Price May Break 0.73 amid Dovish RBA Minutes Saqib Iqbal 1 year The Dollar Index has dropped, but this could still be only a temporary one. Making a valid breakout through the immediate obstacles could signal an upside continuation. The Double Top reversal pattern will be activated only after making a new lower low. The DXY Dollar Index price has found support and now is struggling to rebound. A temporary bounce back was somehow expected after the most recent sell-off. However, the pressure is still high, so further drop could signal that the USD could depreciate further versus its rivals in the short term. –Are you interested to learn more about forex bonuses?… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.