The Dollar index has showed some signs of weakness yesterday after a long time. The trend may be reversing and we could even see a deeper pull back towards 83.30 or even 82.60. The longer-term trend remains bullish but bulls need to be very cautious.
In Ichimoku cloud terms, the trend remains bullish but with price breaking below the tenkan-sen. If the index does not manage to close for the next 4 hours above that level, there is an increased chance of a pullback towards the kijun-sen at 83.65. The Chikou span remains bullish and so does the cloud which is below price.
A reversal from the current levels will bring the Dollar index towards 83.40 support and maybe lower towards the 38% Fibonacci retracement. The trend remains up but the parabolic rise is getting very risky for new bulls to enter the market. If not already long, better wait for a strong pull back.
The material has been provided by InstaForex Company - www.instaforex.com
