The Dollar index managed to hold above the critical support trend line yesterday and bounced towards cloud resistance. The Dollar index is at an important junction that could bring it even below 92 over the coming weeks.
Blue line -medium-term trend line support
Black line – resistance
The Dollar index hit resistance at the Kumo at 95.25 and is pulling back down. Another try of this resistance is very possible today and even a move towards the upper cloud boundary near 95.50. The Dollar index reached the 38% Fibonacci retracement and got rejected. If yesterday’s low holds, we could see a bounce towards the 61.8% Fibo level.
Green trend line – support trend line
The green trend line held once again and buyers stepped in and pushed the index back up. Price remains below the cloud and the index is trapped between the kijun- and tenkan-sen indicators (yellow and red line indicators). A break above or below this trading range will open the way for a move towards 97 or 93 respectively.
The material has been provided by InstaForex Company – www.instaforex.com