The Dollar index bounced off support yesterday as we expected and is trying to break above the 97.50 short-term resistance. This will mean that the move towards 98.50 we were expecting has started.
Blue line - support
The Dollar index bounced off the short-term cloud support and is trying to break above resistance. Trend is neutral as the index has been trading in a range for several weeks. Short-term support is at 97. Resistance at 97.50-97.60.
Red line - resistance trend line
The Dollar index is diverging in the daily chart and is bouncing off the lower channel boundary. I still expect price to move towards the daily Kumo at least near 98.30-98.50. It is also possible to reach the upper channel boundary. To sum up, I remain bullish about the US dollar at least for the short term.
The material has been provided by InstaForex Company - www.instaforex.com
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