The Dollar index broke below support levels yesterday as I initially expected and pushed lower towards the 95 support level. The longer-term price pattern remains inside the triangle boundaries. Price is heading towards 95 where the lower triangle boundaries are found.
Blue line – broken support
Red line – resistance trend line
The Dollar index has broken below the 96 support and has reached the 1st short-term target of 61.8% Fibonacci retracement. Price is below the Ichimoku cloud and trend remains bearish.
Red line – resistance
Green line – support
The Dollar index remains inside the triangle pattern and is heading towards the lower triangle boundary as expected. Short-term trend is bearish but medium- to long-term trend remains neutral. We have been inside this triangle for more than 5 months. I believe the 95 area should be a buy area as I believe support will be held. A breakout above the triangle will be a bullish signal targeting new highs.
The material has been provided by InstaForex Company – www.instaforex.com