The Dollar index got rejected as expected at the 88 level after back testing the break down level of 88. The trend is unclear as we can see the index is mainly moving sideways between 87-88. This range trading means we should be patient and wait for a break out. The longer-term trend remains bullish.
Red line = resistance
Black line = support
The Dollar index is inside the Ichimoku cloud but well above the lower boundaries of the cloud. Support is at 87.15 and resistance at 88.15. The sideways consolidation could be a sign of a top but traders should be patient and wait for a break out before betting on either side of the market. Soon, we will see a new short-term trend start. If 88.15 breaks, we could see a run towards 89 and higher. If support at 87.15 breaks, we should see a move lower towards 86.
Blue line = daily support
Red line = daily resistance
The Dollar index remains bullish in the longer-term as long as price is above the cloud. There is clear indecision in the short-term. We could see new highs but equally possible is to see a pull back towards 86. So, we need to be patient and wait to see which price level breaks.
The material has been provided by InstaForex Company - www.instaforex.com
