The Dollar index is holding above the trend line support at 94-94.20 but has not showed much strength in order to overcome cloud resistance at 94.90-95.30. A rejection here and a break below 94.20 will bring in more sellers that will eventually push price towards 93.
Blue line – trend line support
Red line – trend line resistance
Price is below the Ichimoku cloud and trapped between the red and blue trend lines. Support is at 94.30-94.20 while resistance is at 95-95.30. Short-term trend is neutral as price has been moving mainly sideways for the last couple of days.
Green line – weekly trend line support
Price is holding above the weekly trend line support. A break below 94.18 will be a bearish sign. With stochastics turning lower from overbought levels and price below the weekly cloud, chances favor the bearish scenario and a downward break for the Dollar index. All we need to do is be patient and wait to see if support fails.
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