The Dollar index is below the trend line resistance and is fighting to hold above the short-term Ichimoku cloud support. As shown in the 4 hour chart below, a buy signal will be given once we break above the blue trend line. A sell signal will be given if we break below the red trend line support at 80.
If the Dollar index breaks above the blue trend line resistance at 80.20, it will also break above the Ichimoku cloud. This will give me at least the 80.60 target with a great opportunity for a move higher towards 81. As long as we trade below the blue trend line, intaday traders should prefer to be neutral or bearish.
The daily chart shows me that price is supported and we should not go short at current levels. If support at 79.75 is broken, then we should prefer short positions. If the price breaks above 80.40 which is the previous high area, it will also have broken above the Ichimoku cloud in the daily chart. This will be a good buy signal that could bring the index near 80.70. Support is held for now. So, I prefer to be bullish as long as we hold above 79.75 on a daily basis .
The material has been provided by InstaForex Company - www.instaforex.com
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