The US Dollar Index has broken above the medium-term trendline resistance showing that bulls are in control. The price is pulling back to backtest the breakout area. This backtesting is important as it will show us if the breakout was fake or not. The short-term trend remains bullish.
Blue lines – trend lines
The US Dollar Index is above the Ichimoku cloud and has broken above the downward slopping trendline resistance. This breakout area is now being backtested. Support is at 96-95.70. Resistance is at 97.20-97.70.
Blue line – medium-term trendline resistance
The US Dollar Index is making a weekly chart above the trendline resistance. The price is also above the tenkan- and kijun-sen indicators which support the bullish trend. The price has retraced only near 38% and is bouncing strongly. If this week and the next one remain above 96, a new upward move will start with new highs as a target.
The material has been provided by InstaForex Company – www.instaforex.com