The US Dollar Index has made a small pullback but the dollar remains strong. A possible bullish flag pattern is formed also in the short-term so bears should be very cautious. A breakout above 96.20 will confirm the 98 as the first target.
The Dollar index is trading above the Ichimoku cloud in the four chart and is forming a bullish flag. Flag breakout will happen if price breaks above 96.20 and this will target at least 98. A break below the Ichimoku cloud support at 94.80 will decrease dramatically the chances of the pattern.
Red line- resistance
Green line – support
We can see a bullish flag pattern in the weekly chart as well but the price remains below the kijun-sen resistance (yellow line indicator). This could mean that a pull back towards the recent lows or the Ichimoku cloud is more probable than a breakout now. A break above the red trend-line resistance will give me a huge bullish signal with new highs as target.
The material has been provided by InstaForex Company – www.instaforex.com