The Dollar index has EURUSD as its major component. So we expect to see an increase in volatility today after the ECB meeting. The Dollar index is fighting to break above short-term resistance at 80.40-60. It is a positive sign that prices have moved back above 80 as this is not only technical support but also an important psychological level for Dollar bulls.
The index is fighting to break above the Ichimoku cloud resistance and also bulls to regain the upper hand must break above the red downward sloping trend line resistance at 80.50-60. Short-term support is found at 80-79.95-79.70. Short-term resistance is found at 80.40-60.
On a weekly level we are at a very crucial pivot point that will determine longer-term trend. A break below 79 will open the way for a move towards 72-73. If support is held we can expect a trend reversal being confirmed if prices break above 81.30-40. For now we remain neutral expecting to see how the market reacts to ECB.
The material has been provided by InstaForex Company - www.instaforex.com
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