The US Dollar index has reached our target of 100 and has made a sharp reversal towards 99. This sharp reversal is most probably a short-term correction and the trend will resume higher towards the 61.8% retracement at 101.50.
The US Dollar index has pulled back towards the tenkan-sen (purple line). Next support is at 98.15 at the kijun-sen (yellow line). The short-term trend remains bullish, although we are close to reversing the short-term trend to bearish if we break below 98.95.
The longer-term trend remains fully bullish. I still expect the US Dollar index to reach at least the 61.8% retracement at 101.50. Important monthly support is at 95. As long as the price is above that level, the long-term trend will remain bullish. Strong resistance is at 101.50. Bulls need to be extra careful as the rise from low 80’s is very steep.
The material has been provided by InstaForex Company – www.instaforex.com