The Dollar index bounced towards important short-term resistance at 100. I expect to see at least a small pullback towards 99.60-99.40 before the resumption of the bounce. However this is not necessary. We could very well continue much lower towards 98-97.50.
In the 4-hour chart we see that the Ichimoku cloud has provided enough resistance to stop the rise in the Dollar index and with the oscillators overbought and diverging, I will be expecting a decline in the Dollar index at least towards the 4-hour kijun-sen (yellow line indicator) support.
Blue line- resistance trend line
Green line - long-term trend line support
On a weekly basis the Dollar index holds above the neckline support. A break below 99 will confirm the initial break down and the price will be expected to mount a serious challenge at the long-term green trend line support at 98. Breaking below it will open the way for a test of the cloud support.
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