The US Dollar Index has broken above the bullish flag pattern formation but not above the resistance level of 96.20. The trend favors bulls, but it rejection takes plase here, the price will drop towards 94.90.
Gold price is trading above the Ichimoku cloud in the 4-hour chart and this is a bullish sign. A rejection at current levels could bring the index back towards the cloud support around 94.90. However I’m medium-term bullish as long as price is above the cloud. A break above 96.20-96.30 will be a bullish sign of trend continuation towards 98.
Red line – resistance
Green line – support
The weekly chart has not provided us with any new information yet. The price remains trapped inside the long-term bullish flag pattern and this week’s candle is still below the kijun-sen (yellow line) resistance. The more it takes bulls to break above this resistance the more probable ejection and reversal are. A break above the red resistance trend line will be a very important bullish signal.The material has been provided by InstaForex Company – www.instaforex.com