The US Dollar Index was rejected at the trend line resistance I showed in yesterday’s analysis and pushed towards cloud support at 95.70. If the Dollar index breaks below the 95.60 support we should expect a push even lower towards 95. Otherwise, resistance at 96.40 is going to be tested.
Green line – resistance
The US Dollar Index is trading above the cloud support and below the Green trend-line resistance. We have seen an initial rejection from the resistance trend line and a pullback towards cloud support that has held for now. I believe, it is more probable to continue lower towards 95 but if we breakout above the green trend-line, then the shallow correction will be completed and a new upward move will start.
Red line – resistance
Green line – support
The weekly chart remains inside the bullish flag trading range. The rice is still above the Ichimoku cloud but below the weekly kijun-sen (yellow line) resistance. Weekly support is found at 94.50-94. Resistance is seen at 97.80. I remain neutral waiting for an opportunity to get a signal from the direction of the breakout.
The material has been provided by InstaForex Company – www.instaforex.com