The Dollar index remains in a bullish trend. The up trend is very strong and is now looking parabolic. This means that bulls should be on high alert as a trend reversal will be very strong and swift. On the other hand, I do not prefer going against this trend.
Red line = resistance
The Dollar index remains in a bullish trend. Price is above the Ichimoku cloud and still inside the upward sloping channels. Resistance is at 85.80. A short-term pull back is justified towards 85.50. This is the short-term support level. Breaking below that level could push the index towards 85.
The parabolic rise in the Dollar index is strong. It is prefered to stay neutral than trade against this strong up trend. However, bulls should also take their precautions as a pull back could bring the index as low as 84.40 in a very fast manner. Such parabolic rises also bring strong reversals, so it is prefered to raise stops in order to lock in profits. A normal correction would bring the index towards the 83.50 level. In conclusion, we remain fully bullish with our stops raised in order to protect profits. Betting against this strong trend is not advisable.
The material has been provided by InstaForex Company - www.instaforex.com
