The Dollar index is moving sideways near its recent highs. Price has broken out of the bullish channel but there is no bearish trend in any time frame. Price is moving sideways in what we could say is a triangle pattern.
Green lines – bullish channel
Blue lines – triangle pattern
The Dollar index is consolidating near its recent highs. Short-term support is at 97.65 and resistance at 98.15. A breakout above resistance is expected to be short-lived as oscillators are diverging. A break below support will open the way for a push towards 96.
Red lines – sideways long-term channel
Green line – important medium-term support
Blue lines – projected possible path
I expect the Dollar index to make at least one pullback towards the green trend line support and the Kumo. A bounce will then follow most probably, but for now I focus on the bearish side of the index expecting a pullback from the current levels.
The material has been provided by InstaForex Company – www.instaforex.com
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