The Dollar index has broken short-term resistance levels and is testing horizontal resistance where a previous double top rejection occurred. Short-term trend is bullish with increased chances of making medium-term trend bullish again as we are heading towards 96.50 resistance.
Black line - horizontal resistance
Blue line -support
The Dollar index is above the 4-hour Ichimoku cloud and is breaking above and out of the triangle pattern. Next resistance is at the previous highs at 96.50. A clear break above that level will open the way for a push towards 97.50. Support is found at 95.70. The next one is at 95.
Green line - important medium-term support
The Dollar index is holding above the green trend line support and is now testing the Ichimoku cloud resistance at 96.50. A break above it will be a bullish sign. Bulls will need to defend the green trend line support no matter what. Otherwise a huge wave of sellers will come. A break out above the weekly cloud will open the way for new highs.
The material has been provided by InstaForex Company - www.instaforex.com