The Dollar index tested again on Friday the double bottom low around 91.76 and is now bouncing hard higher above last week’s highs. I’m bullish for the short-term for at least a bounce towards 92.60. However, we could set up a bigger bounce, one that I have been waiting since mid-December.
The Dollar index has short-term resistance at the 38% Fibonacci retracement and the 4 Kumo (cloud) AT 92.60. I expect at least a short-term bounce towards that price level to test resistance. Breaking above that level on the first try would be a very bullish sign.
On a weekly basis, the start of the week looks bullish as we already have broken above last week’s highs. However important weekly resistance is found at 93.20. Breaking above that level will imply more upside should come towards 96-97. Support is at 91.70 and if broken look for a new low below 91.The material has been provided by InstaForex Company – www.instaforex.com