The Dollar index got rejected as expected by the Daily Kumo (cloud) resistance at 100.80 and is turning lower. The price is expected to start a downward move towards 100. This downward move will be critical to the medium-term view as a higher low will increase the chances of a bullish continuation.
Green line - support
The Dollar index broke above the black trend line as we expected yesterday but it was mostly probable the final upward move as the price is now breaking below the green trend line support at 100.45. Both RSI indicators point towards the start of a downward move. Support is at 99.80-100. Breaking below the Kumo (cloud) in the 4-hour chart will increase the chances of breaking below the March lows.
Black line -support
The Dollar index got rejected at the daily cloud resistance as expected. I believe we have a short-term top made yesterday and I expect down days starting today with a possible move towards 99.80. We have a bearish signal by the tenkan-sen (red line indicator) crossing below the Kijun-sen (yellow line indicator) below the daily cloud.
The material has been provided by InstaForex Company - www.instaforex.com
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