The Dollar index is challenging very important short-term resistance. The spike up in the Dollar index from Monday was continued yesterday with more Dollar strength. Price is breaking above the Ichimoku cloud in the short term, but more strength is needed for a full scale reversal.
Red line - resistance trend line
The Dollar index is trading above the 4hour Kumo (cloud). Support is at 89.90 and next at 89.60. Resistance is at 90.20. Price is making higher highs and higher lows. The slope of the rise implies strength but we will need to see more higher highs and higher lows for this trend to be sustained.
On a weekly basis the Dollar index is trading above the tankan-sen. Today is the last trading day of the week and so far the weekly candle could be seen as a weekly reversal signal. Next important weekly target is at the kijun-sen at 91.70. The Dollar index remains in a long-term bearish trend but there are signs of a reversal. I'm bullish as long as we hold above this week's lows.
The material has been provided by InstaForex Company - www.instaforex.com
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