The Dollar index continues to trade inside the upward sloping channel. Price held support yesterday and bounced towards recent highs above 97. If this week we see a close above 97, this will be a bullish confirmation breakout above cloud resistance.
Dark blue lines – bullish channel
Price remains in a bullish trend in the short-term as price holds inside the bullish channel and above the Ichimoku cloud on the 4-hour chart. Short-term support is at 96.40-96.60. Resistance is at 97.25-97.50. Long-term support is at 95.
Red line – resistance
Green line – support
The Dollar index is breaking above weekly cloud and trend line resistance. It is of great importance for price to remain above the cloud, otherwise a fake breakout will be a very bearish signal. The upward sloping green trend line remains the most important technical support indicator for the trend. As long as price is above it bulls remain in control.
The material has been provided by InstaForex Company – www.instaforex.com
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