Red lines - trading range
The Dollar index has broken below the short-term bullish channel. Was the breakout a false one? The price is currently re-testing the breakout level of 96.70 which was the triple top high. With oscillators diverging, it seems that the index will pull back deeper even below the cloud support at 96.60, maybe towards 95. For this scenario to be canceled, the Dollar index needs to break above 97.60.
The upper cloud boundary resistance remains intact. The price got rejected at that area, and this will put the lower boundary of the cloud to the test. The next support is the weekly kijun-sen at 95.80. If this week's candle closes with a rejection at the upper cloud boundary, we should expect a pullback towards 95.
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