The US Dollar Index did not hold the short-term support and is heading towards our initial target at the 61.8% retracement. We are trading below the 50% retracement. I remain bullish in the longer-term and I expect the trend to reverse higher from the 61.8% retracement.
The US Dollar Index has broken below the cloud support and is trading around the 50% retracement. This could be a new bearish flag. Support is at 94.90 and if my bullish scenario is true, we should see reversal from that level or earlier.
The weekly chart is neutral as the price is trapped between the tenkan-sen and the kijun-sen indicators. Support is at 94 on a weekly basis but I believe it will not be a good sign if we reach that level. Resistance is at 97.80. So, a break above this area will be a very bullish sign that will confirm the important long-term low at 93.10 as a point of the trend reversal.
The material has been provided by InstaForex Company – www.instaforex.com