The U.S. market is faltering as scandals hit companies like Facebook. It's also struggling because larger companies realize the true impact of President Donald Trump's tariff and trade war with China.
Previously, as the U.S. markets went from strength-to-strength, the U.S. dollar index continued to weaken. This was contrary to the normal situation where a strong U.S. market was usually accompanied by a strong dollar.
A weaker U.S. market usually sees a weaker currency, so when this is added to the previous contrary behavior it suggests the greenback could fall further. The dollar index has dropped below the long-term support level near 93 and then below the critical support level near 91.
Temporary support has developed near 88.5. It is a temporary level because there is no previous record of support near this level. This remains a very bearish situation.
Trend analysis is applied using the Guppy Multiple Moving Average indicator. The GMMA analysis shows a very strong downtrend remains in place.