The US Dollar index has continued moving higher towards the green trendline resistance and has not pulled back. I’m bullish on the index, but I would prefer to protect my longs since there are many chances of a pullback in the index.
Green line – trendline resistance
The pice is currently above the green trendline and above the Ichimoku cloud. It is important to see where we close today as a close above these resistance levels is important for the continuation of the uptrend. Pullbacks should be bought as, I believe, the longer-term bullish flag pattern will break upwards.
Red line – resistance
Green line – support
The weekly chart shows how the price tests the kijun-sen resistance area. The price is above the weekly cloud support and I would not be surprised to see the index reach the red trendline resistance over the coming days. This pattern is a bullish flag and I will be extremely bullish if the index breaks out above the resistance. Target is new highs above 102.
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