The Dollar index is challenging the important short-term cloud resistance and upper cloud boundary at 90. If bulls manage to break above the cloud and stay above it, they will have made a first step towards trend reversal. Bears continue to remain under control of the trend but they will need to defend short-term resistance area 90-90.30 and the April high at 90.60.
Black line - important medium-term support
The reversal off the 89.30 area on Tuesday was an important bullish reversal pattern that fortunately for bulls has follow through. Price has broken initially above the tankan- and kijun-sen while now bulls try to break above the cloud. The most important resistance is the 90 level and the 90.60 high. Breaking above these levels will be constructive and will most probably push the index at least towards 91.70. Bears on the other hand want to see price break back below the cloud support at 89.70. As long as we hold above 89.70 I would not be bearish.
The material has been provided by InstaForex Company - www.instaforex.com
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