The Dollar index has made a short-term trend reversal towards 89, as expected. Yesterday I mentioned that there were increased chances of a short-term trend reversal. Long-term trend remains bullish as long as price is above 87.50 - 87.80.
Black lines = price channel
The Dollar index has reversed from the upper channel boundaries towards our short-term target of 89 and below. Support is found at 88.50 and 88.30. It would not be a good sign if the index were to fell below 88. Important resistance for the short-term trend is at 89.25. Breaking above that level could push the index to new highs.
The weekly chart has made a bearish reversal yesterday. Although the long-term trend remains bullish and the bullish flag target remains at 91. Yesterday I mentioned that bulls should be very cautious as we are close to completing the long-term upward move from 79.75. I believe there are many chances that this pullback will stop above 88.50 and then will give us a new higher high to complete the upward move. Nevertheless, bulls should be very cautious as we are at the final stages of a big upward move.
The material has been provided by InstaForex Company - www.instaforex.com
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