The Dollar index has back tested the very important area of 98 where it was once resistance but now support. Price remains inside a medium-term bullish channel and as long as price is above 98, we should expect a new higher high towards 100.
Red lines – bullish channel
Red rectangle – support
Green rectangle – resistance
The Dollar index is bouncing off the support area of 97.80-98. This was once resistance and now support. Price has respected this support at the current pull back and is now bouncing. This is a sign of strength. This increases the chances of price touching and testing the green trend line resistance again.
According to the Ichimoku cloud indicator trend is bullish as price is above the Kumo (cloud). Price continues to respect the kijun-sen( green line indicator). The Chikou span remains above price. All parts of the Ichimoku indicator support that we remain in a bullish trend. This could change on a break below the Kumo at 97.10-97.30 (and rising).The material has been provided by InstaForex Company – www.instaforex.com