The US dollar showed signs of strength yesterday and early this morning but bulls need to be very cautious as we are approaching very important short-term resistance area. A trend remains bearish as the price is heading towards lower lows and lower highs.
Green line – trend line resistance broken
Red line – horizontal resistance broken
The US Dollar Index managed to break above the short-term trendline resistance levels. This is a bullish sign. Support is at 94.40 and at 93.77 now. The price remains below the Ichimoku cloud that implies the trend remains bearish.
As we can see in the weekly chart, the price is testing the broken kijun-sen (yellow line) indicator. The important support and low at 93.10 holds for now. However, the trend remains bearish with a high probability of a move lower towards 92.50 or even 90 where the 50% retracement is found.The material has been provided by InstaForex Company – www.instaforex.com