The Dollar index got rejected at the Ichimoku cloud resistance as expected. Price has turned lower towards the kijun-sen support and we have a short-term reversal signal. The back test of the break down is complete and I believe we should start a new downward move towards 95 at least.
As can be seen in the 4-hour chart above,the Dollar index has reached the 97.15 resistance area by the Ichimoku cloud and got rejected. This is
a bearish signal. Resistance is at 97.15. Support is at the kijun-sen (yellow indicator) at 96.55.
Red line – resistance
Green line – support
The weekly chart continues to show price trapped inside the triangle. If we look closer, price is now also trapped between the kijun- and tenkan-sen indicators. I believe price will eventually push towards the lower triangle boundary at the green trend line support. A break above the triangle will be a buy signal for me with new highs as target.
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