The Dollar index is consolidating below short-term resistance at 99.35. The longer-term trend remains bullish. The weekly chart also remains bullish. I believe there are increasing chances that we may see a low in this move on Wednesday and we are not going to see it below 96 over the coming weeks.
Green line= resistance
The price is inside the cloud as shown in the 4-hour chart. This is a sign of neutrality. Nor bulls nor bears have the upper hand. Bulls will control the trend if the price breaks above 99.90. Bears are going to be back in control if price breaks below the cloud support at 97.50.
The weekly chart remains fully bullish. The price has pulled back to test the tenkan-sen support indicator on wednesday and the 50% retracement break out area. I believe that after this back test we should expect the index to reach the 61.8% retracement at 101.50 at least. Trend will change to short-term bearish if we break Wednesday’s lows.
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