The dollar index is challenging the 4 hour cloud resistance and the medium-term trend line resistance at 89.50-90 area. Trend is bearish in cloud terms, but it can confirm a reversal soon if it breaks above the cloud.
Red line – medium-term resistance trend line
The US dollar index is testing the previous support which turned into resistance at 89.60. The lower boundary of the Ichimoku cloud is also at this level. This is the important resistance. A rejection at the current price level could push the index to new lows. The short-term support is at 89.20. A break below it will be a bearish sign.
Blue line -long-term resistance
On a weekly basis the US dollar index remains in a bearish trend. The price needs to break and close first above 90.85 and next 91.50 levels in order to confirm a reversal. Target for a possible bigger bounce remains at the weekly Kumo near 93. A rejection at the 91 area could signal another turn lower towards 87. My bigger picture view considers that the entire decline from 103.60 is either complete or near completion, so traders should be monitoring reversal signs.
The material has been provided by InstaForex Company – www.instaforex.com