The Dollar index tried yesterday to break above 101.70 short-term resistance but got rejected and fell back towards 101. This overlapping price structure implies a corrective move that is most probably unfinished, so a pullback towards 100.20 could be expected over the coming days.
Blue line – resistance
The Dollar index is moving sideways between 102 and 100.90. A new high towards 102.50 is very possible but will be the final leg up as the RSI suggests the momentum is weakening. Short-term resistance is at 101.70 and support at 100.70.
The weekly candle confirms the sideways trend we are currently in. Medium-term trend remains bullish. Correction in time instead of price is something bears do not like. Instead of a deep pull back in price, the up trend is being corrected in time as price moves sideways. This is good for bulls. However tops are also made while price moves sideways, unlike bottoms where a spike down is most usually formed. Bulls need to be careful if price breaks below 100.70.The material has been provided by InstaForex Company – www.instaforex.com