The US dollar index intraday bullish flag did not play out as expected despite the breakout. The US dollar has weakened, but it remains inside the bullish channel.

Blue lines - bullish channel

The US dollar index reversed yesterday after spiking higher to new short-term highs. The price broke below support at 99 moving lower towards the kijun-sen (yellow indicator) at 98.65. Channel support is found at 98.25 and cloud support is at 97.70.

The US dollar index made an important breakout during the past two weeks. Now it shows signs of a breakout towards new highs. The price bounced off the ichimoku cloud and both kijun- and tenkan-sen are below it trending higher. However, the price has reached the next important resistance area. Bulls need to be very cautious at the current levels and place stops to protect their positions.