The Dollar index bounced strongly off the 50% Fibonacci retracement and the cloud support in the 4-hour chart as expected. The Dollar index reached 94 which is important short-term resistance and is showing rejection signs.
Red rectangle – resistance area
Black rectangle – support area
The Dollar index is at an important junction. A break above 94.05 will open the way for a move towards 96. A fall below 93.40 will push price towards 92.50 critical low. First important short-term support is at 93.30-93.40. Bulls do not want to see it broken.
Last week’s weekly candle is a bullish one, implying price should continue higher towards weekly kijun-sen resistance at 94-94.30. A weekly break above this resistance level will be a very bullish break out that will eventually push price towards our target of 96-97. The bullish scenario gets canceled if we break below 92.50.The material has been provided by InstaForex Company – www.instaforex.com