The Dollar index remains inside the downward sloping channel and in the support area where the downward correction could end. Today there is increased probability of an upward break. Short-term support is found at 80.50. Short-term resistance is found at 80.85-95.
For the trend to change, prices will need to break above and out of the downward sloping channel. Long positions with the 80.55 stop are favored as well as the 81.50 target over the next few days. Confirmation of this bullish setup will come once prices break above the resistance level of 80.95.
Current price action from 81.50 looks corrective. Prices have been rejected at the 100 day MA and will have the 34 day MA as support. We believe that the 100-day MA will be tested again. The positive slope of the 34 day MA could help support this bullish view and keep the correction in shallow levels.
The material has been provided by InstaForex Company - www.instaforex.com
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