The Dollar index continues to show signs of strength. The reversal from 96 is likely to be a confirmed trend change and resumption of the uptrend towards new highs above 101. The longer-term trend remains bullish as the weekly chart is confirmed and held above support.
The Dollar index reversed from the 61.8% retracement purple area. Now, it is trying to break above resistance of the red ichimoku cloud at 98-98.20. Breaking above this area will be a medium-term buy signal that will increase the chances of the bullish scenario. Support is found at 97. Breaking below 97 and a rejection at 98 is not something a bull would like to see.
The weekly chart remains fully bullish with the price holding above the tenkan-sen and the Chikou span taking a positive slope. Bulls need to be cautious as the kijun-sen and tenkan-sen are flat. This week’s candle is gpoing to be be important to see if we have a follow through the last week’s reversal candle. I remain bullish as long as a weekly close is above the tenkan-sen.
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