The Dollar index got rejected from the short-term cloud resistance at 96.30 and pulled back towards its recent lows at 95.50. A possible double bottom formation could be in play as price is bouncing off the previous lows.
Red line – resistance
Blue line – support
The Dollar index is bouncing off the previous lows at 95.50 which is also a support level. Short-term resistance is at 96.15. Breaking it will increase dramatically the chances of breaking above 96.50 and moving towards 98.
Blue lines -bearish channel
The Dollar index continues to trade right on top of the lower channel boundary. Daily resistance is at 96-96.50. Breaking it will open the way for a push higher towards 97.60.
The material has been provided by InstaForex Company – www.instaforex.com