The Dollar index remains near its recent lows despite last week’s attempt to breakout higher, but resistance at 94.20 turned to be too strong for dollar bulls. The Dollar index is forming a bullish wedge and I believe we are very close to a breakout above it. We should be waiting for bullish signals soon. The trend remains bearish as the price is below the Ichimoku cloud but I believe that the Dollar is likely to reverse soon to the upside and start a new upward move towards 100-102.
Blue lines- bullish wedge
The Dollar index is below the cloud resistance at 94.80. The price is also inside the bullish wedge that is being formed. I expect the Dollar index to breakout this wedge to the upside and start a new uptrend. Short-term resistance is found at 94.20 and medium-term resistance is seen at 95.35.
The weekly chart has pushed the price to close the weekly candle below the kijun-sen and very close to the 38% Fibonacci retracement. The 38% retracement is found at 92.30 but I believe that if the bullish wedge scenario comes true, we will not reach that level but reverse earlier. My longer-term view remains fully bullish targeting above 100 for the index.
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