Concerned over dollar's demise? Good news comes from these support/resistance numbers nearby

The dollar looks like it may be continuing to aim a bit lower, I'm hoping of course to the 79.88 level that I've projected. That would conveniently also have the dollar probing the Fibonacci .786 retracement level at 80.24 that I marked on this chart almost two months ago, not to mention the 80.50 chart support level (as a support/resistance pivot) that Martin Armstrong mentioned in his March newsletter. The indicators show that positive divergence is developing, but they haven't crossed up in a manner that would confirm the low already being in. So it's reasonable to think that the movement down in the dollar today should point to a little more unfinished business toward levels in the range of 79.88 to 80.24.

Once I update the trendlines on this old chart of the dollar, I have a feeling that a low at such levels might test channel support too. These chart levels, along with other analysts' work such as some cycles technicians I follow and Andy Askey's Gann angles analysis from PTV that I featured here yesterday, dovetail rather nicely with the long-wave deflationary theme too. The point being that it's quite possible a low at these levels might actually be a significant one. In chart analysis, it's never a good idea to make a guarantee or bet one's position without confirmation. But it's generally a good idea to position in the direction of probabilities and know when a chart setup is either working or wrong. In this case, once a low in the dollar is reached and confirmed by the indicators, I believe it's reasonable to expect a move higher in the dollar so long as it remains above the level of 77.69. Moving under 77.69, especially if it is confirmed by seeing gold move above 1008 (in U.S. dollar-denominated chart) and then 1040 (1033 in the chart of $gold continuous futures contract), would change the picture and be much more (inflationary) bearish for the dollar.