TThe Dollar index made a small pull back yesterday only to come back up to reach its recent highs. The Dollar index could be forming a bullish flag but this flag is being formed just below the important resistance of the 80 level. This can be seen in the chart below.
The Dollar index is above the Ichimoku cloud and above the broken trend line resistance. However it is below the blue rectangle resistance area. A rejection at current levels could bring the index back at 79.50. A break out above 80 will push the index towards 80.60.
The daily trend remains bearish as price has not broken any previous important high. Bulls are trying to break above the Ichimoku cloud at 80-80.40. This is a very important resistance. If bulls manage to break above this important level, then a trend reversal on a daily basis will have been confirmed. A trend reversal will push the index towards 83-84. Support at 78.70 ust hold for this scenario to come true.
The material has been provided by InstaForex Company - www.instaforex.com
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