The US dollar index has most probably made a short-term top. I expect the greenback to weaken over the next few sessions as a part of a pullback before the resumption of the new uptrend that started at 93.10. I’m neutral waiting for support at 38% or 61.8% Fibonacci retracement to hold the decline and stage another upward reversal.
The US dollar has broken above the cloud resistance. The trend has reversed. However, I see a short-term weakness over the next couple of days that could bring the index back on top of the cloud. the short-term target is the 38% retracement or even the 61.8% retracement.
The weekly chart remains impressive and the next couple of days will be important for this week’s close. The price is above the kijun-sen indicator and the weekly candle is a sign of trend reversal. Weekly critical support is at 93.10 and as long as the price is above this level I remain bullish waiting for a pullback to go long with new highs as target.
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