The US Dollar Index was greatly influenced by the FOMC meeting last night and the Fed’s decision to remain rates unchanged and wait until October. The US dollar ellers and technically this was expected by our previous analysis as price was below important resistance and we expected a pullback towards 61.8% retracement.
Green line – resistance
The US Dollar Index broke below the 38% retracement support and is heading towards the 61.8% Fibonacci retracement. A trend is bearish as the price is below the Ichimoku cloud moving towards lower lows and lower highs.
Red line – resistance
Green line- support
The US Dollar Index is testing the weekly cloud support. The price is trading below the weekly kijun- and tenkan-sen resistance indicators at 95.50 and 96.30. The weekly cloud is providing support and the price is now testing the upper boundary of the cloud. Entering the cloud will turn the longer-term tend neutral. The bullish flag pattern continues to be active with support near 93.40.
The material has been provided by InstaForex Company – www.instaforex.com