USDX remains in bearish trend despite a try by the bulls to regain short-term trend last week. Important resistance levels to watch are found at 95.60 and 96.20. Support to watch out for is at 94.65 and 93.10.
Red line – resistance
The Dollar index is below the cloud resistance. Price is also below the red trend line. Short-term trend is bearish. Unless we see a break above 96.20 I will remain neutral or bearish. Short-term resistance at 95.60 if broken will change trend to neutral. Support at 94.60 if broken will put 93.10 to the test. This implies that a bigger correction should be expected until the end of June.
The weekly chart remains weak. Price is testing the kijun-sen weekly support at 94.80. A weekly close below 94.80 will imply a bearish move should be expected towards the cloud support at the 90 price level. The 50% retracement is important support so we should a push towards that level if we break below 93.10.The material has been provided by InstaForex Company – www.instaforex.com