The Dollar index is trying to escape from its short-term neutral trend. The Dollar index is challenging short-term resistance at 80 and 80.10. In the short-term chart as shown below, the Dollar index is still inside the Ichimoku cloud and above the upward sloping red trend line support. However, it must be noted that the 80.10 resistance is the 61.8% Fibonacci retracement and it is important for bulls to break clearly above it.
With a higher low at 79.35 it is important for bulls to break above the 80.60 high. Breaking above that price level will be a good sign for a strong trend reversal. Short-term trend is changing upwards but it is fragile. The rise from 79.30 is not a clear impulsive move like the decline from 80.60. Bulls need to break above 80.60 to change this.
Long-term trend is still down. However, with a double bottom above 79 and two fake breakdowns of the red upward sloping trend line there are increased chances of a strong trend reversal. Long-term resistance is found at 80.60 and 81.50. Only if these two levels are broken, we will have a confirmed trend change. Support at 79 is crucial that it holds. Otherwise bears will stay in control.
The material has been provided by InstaForex Company - www.instaforex.com
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