The US Dollar index made a strong bounce above our short-term target yesterday. The price moved above the 38% Fibonacci retracement but got rejected by the kijun-sen resistance. The trend remains bearish and, I believe, it is more probable we see new short-term lows before the start of the next bullish move to new highs.
The US Dollar index has found resistance at the kijun-sen (yellow indicator) and got rejected. In order for the index to move higher we need to see at least a 2-hour close above 94.58. If it happens, we could see the price bounce towards 95.35 at least. Support is at 93.56. If it is broken, I expect to see 92.
Red line – resistance
Green line- support
The weekly chart shows the formation of a bullish flag. Bulls want a breakout above the red resistance line. Cloud support is below the price and underpins the longer-term bullish trend. Eventually, I believe, we shall see a breakout to new highs. Support is found around the 92 level where, in my opinion, is a good entry level for longs.
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