The Dollar index is moving higher. Price has moved above the 4-hour Ichimoku cloud resistance. Could the low be in for the Dollar or is this just another short-term bounce. 90.56 is the most important level to watch out for, as this is the previous short-term high and as long as we are below it, we consider this move higher as a bounce and not as a new move.
Red line - long-term resistance trend line
In previous posts I mentioned the possibility that the entire move from 103.60 could be over or could soon be. The Dollar index is now challenging a resistance area that if it is broken, the scenario that the entire decline is over would gain a lot of chances of success. Resistance is at 90 and 90.56. Support is at 89.50 and at 89.10.
Blue line - long-term resistance trend line
On a weekly basis, the Dollar index remains in a bearish trend. However, we could see a big upward bounce even towards the 94-95 area. First important weekly resistance is at 91.60 and next at 92.60. Breaking above the 92.60 will open the way for a move towards 94-95. The market is at least correcting the decline from 95.20. Minimum bounce target is at 91.50. This is not the time to be bearish the Dollar.
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