The Dollar index remains trapped inside the short-term triangle pattern formation. The uncertainty regarding a rate hike this year remains and that is depicted in the sideways move of the Dollar index.

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Black line – resistance trend line

Blue line – support trend line

The Dollar index remains below the Ichimoku cloud and the downward sloping trend line resistance on the 4-hour chart as shown above. Price is trapped inside this triangle but still holds above the very critical support of 94.50-94.70. As long as price is above that level I give more chances to an upward breakout.

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Red line – medium-term trend line resistance

Green line – medium-term trend line support

The Dollar index is below the Daily cloud resistance but above the green trend line resistance. The levels that if broken will provide a meaningful trading signal are the 94.60 level below and the 95.85 level above. Being below the Daily Kumo is not a good sign, but at least the green trend line still holds. Chances are even for any outcome at this stage. Traders need to be very cautious and patient.

The material has been provided by InstaForex Company – www.instaforex.com

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