The US Dollar Index remains in a strong uptrend since it bounced from cloud resistance of 94.50. It is moving towards new short-term higher highs. The medium-term bearish trend is not canceled yet as the price remains below medium-term resistance at 97.
Blue line – support
The US Dollar Index is above the cloud support and in a bullish trend as the price hits higher highs and higher lows. Support is seen at 95 and resistance is seen at 97. There is mounting risk of reversal if bulls do not manage to break above 97. A pullback towards 95.50 will not cancel the short-term bullish trend.
Blue line – medium-term trend line resistance
The US Dollar Index strengthening have pushed the weekly candle above the tenkan- and kijun-sen indicators. However, the most important resistance is still intact. The blue downward sloping trend-line resistance at 97 is the medium-term resistance that bulls need to break. In this case, the bearish scenario will have even less chances for success.
The material has been provided by InstaForex Company – www.instaforex.com