The Dollar index had a bad week but did not break important support levels so the longer-term uptrend remains bullish. The Dollar index will need to be strong this week otherwise we risk to confirm a trend reversal and a bearish market starting.
Red line = resistance
Blue line = support
The Dollar index is supported at 87.90-88 area. Short-term resistance is found at 88.50. If it is broken we will challenge the strong short-term resistance at 88.80. Breaking above that level could be the start that ignites the next upward towards 91.
The bullish flag target remains at 91. The weekly candle is quite worrying but if this week we manage to rally above 88.80 then we have a good chance of making a new higher high to complete the upward move from 79.75. Cloud indicators remain bullish.
The material has been provided by InstaForex Company - www.instaforex.com
