The US Dollar Index held above support despite the selling pressures arisen yesterday after weak retail sales data and comments of BOE’s Carney. The trend remains bullish as long as the price is above 95.40.
The US Dollar Index made a pullback yesterday, but held above the tenkan-sen support in the 4-hour chart and pushed back up above the Ichimoku cloud. Short-term support is found at 96.20 while short-term resistance at 97.25.
Blue line – medium-term trend line resistance
The US Dollar Index has broken above the medium-term trend-line resistance and it seems that the weekly close will take place be above it. This is a bullish sign but US dollar bulls will also need to see a higher weekly candle stick relative to last week’s level of 97.25. In case my bullish expectations after this trend-line breakout are not confirmed, the first bearish signal will come with a break below 95.40. This will increase chances ofa deeper correction towards the 38% retracement.
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