Yesterday, the Dollar index made a short-term reversal to the upside towards 94 but did not manage to move above it. The trend remains bearish in all time frames. Bulls need to step up and push the Dollar index above resistance at 94.20 in order to gain some bullish momentum.
Red line – broken resistance trend line
Now that the H&S target has been met, we saw an upward push in the index yesterday that broke the short-term downward sloping red trend-line resistance. The index is back testing the recent lows but has the potential to stage a bigger bounce towards the resistance at 94.
The weekly chart does not look good. The price is below the kijun-sen and the next support is at 92.30 where the 38% retracement is found. A weekly close above 93.75 is likely to be a positive sign for bulls but only a break above 95.30 will confirm the trend reversal. If the week closes below the kijun-sen (yellow line), there will be increased risk for a drop lower towards 92.30.
The material has been provided by InstaForex Company – www.instaforex.com