The Dollar index is below short-term resistance and is testing last Wednesday's lows after the FOMC meeting. The dollar is showing signs of weakness but we have a higher low formed for now. This could turn into a nice bullish reversal if bulls step in. My longer-term view remains bullish but short-term trend is unclear.
Red line = resistance
Green line= medium-term resistance
The Dollar index made a strong upward reversal following a low after the FOMC meeting on Wednesday but resistance at 99.10 and 99.40 were not broken. The price got rejected and pulled back below the Ichimoku cloud. Short-term trend is unclear as long as we trade above 96.60. Breaking below the last Wednesday's low is likely to turn trend to bearish.
The weekly chart remains bullish as long as the price holds above last Wednesday's lows and the red line tenkan-sen. We got a rejection at the 61.8% retracement and we are testing support at the 50% retracement back. The next important support is at 92. Bulls need to be very cautious and I believe we could see a resumption of the uptrend after this short-term pullback.
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