The Dollar index continues to trade sideways between the important levels of 96.50 and 94.60. The sideways choppy action does not favor short-term traders; they’d better be patient.
Blue line – support
Red line – resistance
Green lines – trading range
The Dollar index continues to trade around the 4 Ichimoku cloud inside a tight trading range as depicted by the 2 parallel green lines. Upper resistance is at 95.80 while short-term support lies at 95.25. However, the most important support and resistance levels are defined by the triangle formation which shown by the blue and red trend lines.
Green line – important medium-term support
The weekly candle remains above the important green trend line support and has moved above the tenkan-sen indicator. A weekly close above the tenkan-sen may signal a move towards the Ichimoku cloud and the 96.50 level. The price being below the weekly cloud is not a good sign for bulls as it increases the chances of eventually breaking below the green trend line support at 94.60. Only a break above 96.50 will make me turn bullish on the Dollar index.
The material has been provided by InstaForex Company – www.instaforex.com
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