The Dollar index remains in an uptrend, but the strong uptrend is showing signs of fatigue. There are some indications that bulls should be very cautious as we could see a small pullback for a few days. Long-term trend remains bullish. Bullish flag target remains at 91 and stop for longs at 87.60.
Red lines = trading range
The Dollar index is trading inside a range between 90.18 and 89.60. Price is above the Ichimoku cloud and trend remains bullish for the short-term. Breaking below 89.60 could push the index towards 89 but this will probably be a buy opportunity. Breaking above 90.18 will probably push the index towards 91 and we will raise our short-term trailing stop to 89.70.
Red line = support
The weekly chart remains bullish as long as price is above 87.60. The tenkan-sen support at 88.50 is the first weekly support. If it is broken, we should expect a test of the consolidation area at 87.60. Breaking below that support we should expect a push towards 85 where the kijun-sen is. Trend remains bullish on the weekly chart, and I still believe we can reach my 91 target.
The material has been provided by InstaForex Company - www.instaforex.com
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