The US Dollar Index managed to continue showing strength and broke out above the first important resistance. Although trend remains bullish, I believe there are a lot of chances to see a rejection at the previous highs of 96.60 and a pullback.
Green line – resistance trend line
Red line – horizontal resistance of previous high
The US Dollar Index is trading above the Ichimoku cloud and has already broken the green downward sloping trend line. This is a bullish signal. However, we also have an important resistance at 96.60 where the previous high was reached. A pullback from current levels is very possible, however I would only focus on buying on the pullbacks. Do not go short on the US dollar.
Green line – support
Red line – resistance
The weekly chart shows how the price is testing the kijun-sen weekly resistance indicator at 96.50-96.60. A breakout above it will open the way towards the red trend-line resistance. I expect the bullish flag that to be broken during next weeks and the USDX to rally towards new highs.
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