The Dollar index is showing signs of strength. We mentioned in previous analysis that Dollar bears should be very cautious because we had warning signs of a possible strong bounce in the index. The index is now challenging resistance that if broken could confirm that we are in a bigger bounce towards 96-97. However my main view remains bearish looking for a move below 90 over the coming weeks.Show full picture
In the 4-hour chart the Dollar index is trying to break out of the Ichimoku cloud resistance. Price is now at the 61.8% Fibonacci retracement of the decline from 93.35. This important Fibo resistance is at the same level with the Kumo. Dollar bulls need to be cautious here for a possible rejection. Support and trend change level for the short-term is at 91.70.Show full picture
On a daily basis the Dollar index is testing the kijun-sen resistance level at 92.50-92.60. Breaking above this level will push the index towards the lower boundary of the Ichimoku cloud near 93.80-94. As long as the index is above 91.70 the chances of a bigger bounce are higher. However longer-term trend remains bearish and this bounce is considered as a selling opportunity.
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Performed by Alexandros Yfantis, Analytical expert
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*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.