The Dollar Index has been in a down trend since topping out on March 19th. Since then, this market has made 3 significant measured moves (MM). The first MM, which is the dominant one, had a neutral retracement. This indicates the start of a strong down trend. However, it had significant left-handed skewing. The skewing is an indicator of momentum and a ratio of 5:38 is extremely weak. This puts a damper on the bearish retracement.
The next 2 MM's were located inside the dominant one. They both had deep retracements, which signals a weakening down trend. The 2nd MM also had extreme left-handed skewing with ratio of 8:23. All together this shows a down trend that is weakening and looking for a bottom. We can use extreme fib extensions to create a possible support zone. Utilizing the fib extensions of the dominant MM and it's two supporting MM's, I have created the first area to watch for a low. It's between 95.38 and 92.54. If the market trades inside this zone, then I will look for more clues to a possible bottom. If the market does bottom inside this zone, then I would expect a significant bounce higher.