The US Dollar Index got rejected once again at the horizontal resistance of a previous high at 96.60 and pulled back towards the Ichimoku cloud support as expected. I prefer to stay neutral as long as the price is below this resistance level or buy when the price approaches the cloud support.
The US Dollar Index is testing the cloud support at 95.75. Now, it seems that bulls are in control of this pullback. Breaking above 96.60 will be a very important buy signal that will probably bring the index to 98.
Green line - support
The US Dollar Index remains above the weekly cloud support trying to reach the weekly downward sloping red trend line resistance of the bullish flag pattern. Breaking above the red trend line will give us a new weekly buy signal with new highs as target.
The material has been provided by InstaForex Company - www.instaforex.com