The Dollar index is making a short-term pullback as expected by our previous post. However, a trend remains bullish in all time frames. The longer-term target since early October is the 91 level as this is the bullish flag break out target.
Nothing new to add to this short-term chart. A trend remains bullish in the 4-hour chart as prices make higher highs and higher lows, the index is above the ichimoku cloud and if we also take into account yesterday’s big upward spike, it is usual to see a short-term pause in the up trend.
The weekly chart of the Dollar index remains fully bullish with 91 as the closest target according to the bullish flag break out pattern. Weekly support is found at 87.50 and weekly resistance at 89.50. I expect to see this upward move that started off this weeks lows to continue higher towards 91 and why not above it. I remain bullish as long as this weeks lows are not broken.
The material has been provided by InstaForex Company – www.instaforex.com