The Dollar index is showing short-term reversal signs. A pullback is justified from current levels. A long-term trend remains bullish as long as price is above 97-96. Long-term resistance was reached at 102 and price got rejected.
Black line – support (broken)
The Dollar index has formed a short-term Head and Shoulders pattern and has already broken the neckline support. Price has already touched the lower cloud support and bounced off it. 101.30 is short-term support. Short-term resistance is at 101.60.
Green line – long-term support trend line
Price is at an important weekly resistance level at 102. This is the long-term 61.8% Fibonacci retracement. This is very important resistance. A doji candle formation on the weekly chart could be formed today and this could be another signal for justifying a pull back. Bulls are in control as long as price is above the green trend line support.
The material has been provided by InstaForex Company – www.instaforex.com
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