$DXY gapped down and closed lower on Wednesday breakout out below the lower boundary of this month's trading range crossing at 79.18. The low-range close sets the stage for a steady to lower opening on Thursday.
Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near-term. If December extends this week's decline, September's low crossing at 78.72 is the next downside target. Closes above the reaction high crossing at 80.31 are needed to confirm that a short-term low has been posted.
First resistance is the reaction high crossing at 80.31.
Second resistance is the 38% retracement level of the July-September decline crossing at 80.97.
First support is today's low crossing at 78.97.
Second support is September's low crossing at 78.72.
