The US Dollar Index hit a new lower low yesterday, but reversed higher above 94.80 again. This fake breakdown is not a good signal for bears and yesterday's low at 94.30 was as important as the May low at 93.10.
The US Dollar Index reversed from the 61.8% retracement reached a new lower low. Now, it is moving higher. Resistance is found at 95.70 by the Ichimoku cloud and the kijun-sen indicator. Bulls will have to break above this level and above the cloud resistance of 96.20 in order to make the trend bullish.
The weekly chart has nearly reached the weekly kijun-sen indicator support (yellow line) and bounced. If we manage to hit new lows this week, we should expect 93.10 to get broke. The Index is seen to be push lower towards 90.The material has been provided by InstaForex Company – www.instaforex.com