The US dollar index got rejected as I had expected and mentioned in yesterday’s analysis. It reached a very important resistance level. The pullback could continue today and even tomorrow as the Fed might keep rates unchanged and the greenback might become weaker.
Red line – resistance
The US dollar index hit the resistance trend line and got rejected. The price is pulling back and we could see it testing the Ichimoku cloud. The thin cloud is not a good sign for bulls. Usually, when a thin cloud is seen, prices move towards it.
Red line -weekly resistance
Green line – weekly support
The weekly chart shows us how the weekly candle got rejected initially at the red trend-line resistance. We could see a pullback towards the cloud support at 95.70. The bullish flag pattern remains valid and we are waiting for a breakout. The long-term trend remains neutral as long as the price remains inside the trading range.
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