The US Dollar Index was very volatile on Friday as the US dollar lost ground, bulls stepped in and made things rise but not to new highs. This double top rejection is a very important pattern that could give us a signal. However, it the index hit new highs on the weekly chart, we could reach the level of 100 level very fast.
Red line – resistance
The US Dollar Index made a pullback towards the 38% retracement. A double bottom is formed. The next resistance is at 97.50. Support is found at 96.50.
Last week’s candle favored bulls as the price managed to stay above the kijun- tenakan-sen. So, the important long-term support is found at 96 and 96.70. A break above 98 will increase chances of bulls to reach new highs around 102-103.
The material has been provided by InstaForex Company – www.instaforex.com