The Dollar index is moving higher towards 95.80 short-term resistance. Price, however, if we look from a distance remains still inside the longer-term sideways triangle pattern.
Red line – triangle upper resistance
Blue lines – triangle lower support
Black line – horizontal resistance and previous high
Green lines – short-term bullish channel
As we can see in the 4 hour Dollar index chart above price is trying to break out of the bullish channel and move towards the upper triangle boundary and previous high towards 96-96.30. Short-term resistance is right here at 95.80. Support is at 95.40.
Green line – important medium-term support
The sideways action continues for one more week. Price remains above the important green trend line support and below the Ichimoku cloud. If one is bullish should buy near the Green line using it as stop. If one is bearish should sell once the support trend line is broken. I prefer to stay neutral and wait for a clear breakout signal.
The material has been provided by InstaForex Company – www.instaforex.com
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