The US Dollar Index has reached an important resistance area and I expect at least a short-term pullback from current levels. The trend remains bullish in all time frames, but we can see some reversal signs in the short-term.
Blue line – horizontal resistance
The US Dollar Index remains above the Ichimoku cloud confirmingthat the trend is bullish, we have reached the previous high and an important resistance trendline. There are signs of a possible reversal, so bulls need to be very cautious. Support is found at 97.30 and then at 96.70.
Blue line – resistance
The weekly chart shows how we are currently close to resistance. So, we need to be extra cautious. The price is above both the tenkan- and kijun-sen indicators confirming a bullish trend. A break above 98 will be a very strong buy signal. My preferred scenario is the one with new highs.
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