The US Dollar index made an upward bounce as expected from the 61.8% Fibonacci retracement. The price has bounced back towards cloud resistance and dollar bulls could try to get some profit. We are below important resistance levels and bulls will need to show more strength in order to make a breakout.
Green line – resistance
The US Dollar Index is testing short-term cloud resistance. I expect an initial price rejection at the current levels, but I do not give many chances of breaking below Friday’s lows. I expect the price to reach a higher low and then reverse back upwards.
Red line – resistance
Green line – support
The US Dollar Index has touched the weekly Ichimoku cloud support and bounced strongly. Weekly resistance is found at 95.50-96 by the tenkan- and kijun-sen indicators. The weekly cloud is important support and I believe the index will hold above it. The bullish flag pattern is still in play but with no clear long-term signal yet.
The material has been provided by InstaForex Company – www.instaforex.com