The Dollar index has broken above short-term resistance levels and has made a short-term trend reversal. Currently, it is trading at overbought levels so a pullback towards 79.70-79.60 is quite possible today.
In the 4 hour chart above, you can see how price has broken above the Ichimoku cloud resistance and the downward sloping trend line. Support is at 79.70 where previous resistance was found. I expect to see a pullback today in the Dollar index. Yet, I believe there are increased chances we are in a bigger longer-term trend reversal from 79.
In the daily chart above, you can see how the short-term trend reversal has been challenging the daily Ichimoku cloud resistance. The downward sloping trendline resistance that starts above 84 and comes throught the peak at 81.50 is now broken. However, strong resistance is found near 80-80.40 as the Ichimoku cloud stands there. Bulls will need to break above that area to confirm a larger trend reversal.
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