The US dollar index broke above important resistance levels yesterday after the FOMC had announced its decision to maintain rates unchanged. The current price action is very bullish in the longer-term, but bulls could expect a short-term pullback.
Red line – resistance (broken)
The US dollar index has broken above the important resistance at 97.25. However, a rise from 93.80 can be seen, so we expect a pullback towards 97 in a couple of days to back test the breakout area or even towards the 38% Fibonacci retracement.
Red line – weekly resistance
Green line -weekly support
The US dollar index has broken above the weekly resistance trend line. The price is above the weekly cloud support. A long-term view has changed to bullish however we should be patient and see where this week’s candle closes. With the US dollar index reaching a higher high, bulls are in control even if we make a pullback next week. Buy actions should be preferred with 94 as stop and targets of new highs.
The material has been provided by InstaForex Company – www.instaforex.com