The US dollar index is moving in a bearish short-term trend but with increased chances of a bounce as we are trading near the lower channel boundary. The long-term trend remains neutral and a bullish flag is still valid.
Blue lines - bearish channel
The US dollar index has broken the 61.8% Fibonacci retracement. This is not a good sign for the USDX bulls, but the price is very close to the lower channel boundary. This justifies an at least short-term bounce. Resistance is found at 94.55 and at 95.35.
Red line -weekly resistance
Green line - weekly support
The weekly candle has entered the long-term Ichimoku cloud and this has changed trend to neutral. Bulls need to break above the Ichimoku cloud in order to regain control. The Ichimoku cloud resistance is found at 95.40. A weekly break above that level will be a clear bullish sign. Until then, we need to be patient as we could see a deeper correction towards the long-term 38% Fibonacci retracement at 92.20.
The material has been provided by InstaForex Company - www.instaforex.com