The Dollar index is pulling back as expected towards the cloud support and previous resistance of 89.60. Price remains above the cloud support in the 4-hour chart, so the short-term trend remains bullish.
Short-term support is at 89.60. Resistance is at 90.56. Price has broken below the kijun-sen and is heading towards cloud support. Bulls need to bounce from the support levels and eventually break above 90.56. Making a higher low is important for bulls. If price however breaks through and below the 4-hour cloud, this will imply that the entire bounce is most probably over and we are heading for new lows towards 87.
On a daily basis, the Dollar index got rejected at the kijun-sen and is heading towards the tenkan-sen (red line indicator) support. Daily trend remains bearish. Support on a daily basis is at 89.60. A daily close below it will be a bearish sign.
The material has been provided by InstaForex Company - www.instaforex.com
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