It was a quiet day for the Dollar index yesterday as the market holiday kept participants mostly away. The Dollar index is trapped in a trading range for the short term and traders should be very cautious opening new positions.
Blue line - medium-term support trend line
The Dollar index has short-term resistance at 95.92 and support at 95.50. The decline from 96.27 has an overlapping structure and this implies that it is corrective of the main bullish trend. Important medium-term trend change level is at 94.50. So bulls will need to defend this level.
The Dollar index so far holds above the important green trend line support. The 94.50 level should be used as stop for long positions and 96.30 for short positions. Important weekly resistance by the Ichimoku cloud is at 96.50.
The material has been provided by InstaForex Company - www.instaforex.com