The Dollar index got rejected yesterday as we expected and moved towards the short-term support of 96. For now this support level is held but price remains in the bearish trend.
Red line – resistance
Blue line – support
The Dollar index is below the Ichimoku cloud in the 4-hour chart. Price is in a bearish trend as long as we are below the Ichimoku cloud. However short-term support is held for now. A break below 96.20-96.10 will signal more weakness to come and push the index towards 95.
Red line – resitance
Green line – support
The weekly chart shows how price remains inside the triangle pattern. Price is also below the kijun-sen indicator and is heading towards the tenkan-sen support. If broken, we should see the lower triangle boundary at the 95 area. A break above the triangle will imply a new trend starting and new highs coming.
The material has been provided by InstaForex Company – www.instaforex.com