The US Dollar index did not reverse from the 61.8% retracement yesterday but extended its bounce towards the Ichimoku cloud resistance and the 78.6% retracement. The price is showing signs of a trend reversal and rejection so I feel more confident we have seen the highs and a new short-term downward move has started.
The US Dollar index is below the Ichimoku cloud resistance and I prefer to open short positions for the short term. Resistance and stop for bulls can be the 96.10 level. On the other hand, bulls will want to defend this short-term uptrend and do not want to see a rejection at the current levels and a break below 94.95.
Red line – resistance
Green line – support
The US Dollar index continued with its bounce higher, but, I believe, the weekly resistance by the tenkan-sen and kijun-sen at 95.50 and 96.50 will not be broken and we will see a rejection. I believe that the final push lower for the US Dollar index has started and we should expect the price to reach the green trendline support and the Ichimoku cloud on the weekly chart. My target is near 92.
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