The Dollar index as expected is showing signs of reversal off the weekly Kumo. I continue to expect the Dollar index to strengthen significantly from current levels.
Red lines - bearish channel
Blue lines - trading range
The Dollar index has broken out of the bearish channel but remains below the 4-hour Kumo (cloud) and inside a sideways trading range. Cloud resistance is found at 97.50. Support is at 97.
Red line - resistance
Green line - former long-term support trend line
The weekly candle is still above the weekly Kumo (cloud). The bounce is starting and it is a positive sign the fact that we did not break below cloud. I continue to expect a strong weekly bounce towards the upper cloud boundary or even the red downward sloping trend line. This is not the right time to be bearish about the US Dollar.
The material has been provided by InstaForex Company - www.instaforex.com
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