The Dollar index continued its upward bounce yesterday extending it towards the 50% retracement of the decline from 102.25. I continue to favor a bearish reversal in the index especially now when the price has reached important daily cloud resistance. Overall I believe that the upside is over or soon will be completed.
The Dollar index is approaching the upper cloud boundary resistance at the 50% Fibonacci retracement. This is resistance area. So far short-term trend remains bullish as the price is making higher highs and higher lows. Short-term support is at 100.25 and at 99.70. Next resistance is at the 61.8% Fibonacci level at 101.
Black line -neckline support
Green line - long-term trend line support
The daily chart suggests that we might see some more upside today in the Dollar index towards the cloud resistance and probably towards the blue downward sloping trend line. The Dollar index is expected to make a lower high soon and reverse downwards. I am focused on selling the US dollar.
The material has been provided by InstaForex Company - www.instaforex.com
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