The Dollar index remains in a bearish short-term trend. The index bounced higher yesterday towards short-term resistance of 96.90 but got rejected. I believe that the downward pressures are not over and I believe it is more probable to see price reach 95.
The Dollar index as shown on the 4-hour chart above is making lower lows and lower highs. Price is below the Ichimoku cloud. Price has broken the 38% retracement and I believe is heading towards the 61.8% retracement.
Green line – support
Red line – resistance
The weekly chart continues to show that a trend is neutral as price is moving inside the multi-month triangle pattern. The Dollar index is testing the kijun- and tenkan-sen support indicators. If broken, we should expect more selling pressures to push price towards the lower triangle boundary. A break above the upper triangle boundary will be a bullish signal with new highs as targets. If we break below the green triangle support trend line, I would expect price to move towards the bigger blue rectangular area near 90.
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