The US Dollar Index remains in a short-term trend as the price continues to hold above the short-term support indicators. However, an inability to make a strong upward move after the new short-term high is a bearish sign.
Green line – resistance
The US Dollar Index is in a bullish short-term trend as the price is moving towards higher highs and higher lows above the Ichimoku cloud. However, we need to break above the green trend-line resistance in order to help bulls hold control of the trend.
Red line – resistance
Green line – support
The US Dollar Index did not manage to break above the kijun-sen resistance. Bulls need to see a weekly close above it in order to gaim momentum to test the resistance trend line. Otherwise, we will get a strong rejection soon that will push the price towards the weekly cloud support at 94.50. The more time passes the less possible is a move lower towards 92. That is why my pullback target is at 94.50.
The material has been provided by InstaForex Company – www.instaforex.com