The Dollar index continues to consolidate. There is no clear trend as the index moves mainly sideways inside a trading range between 92.40 and 91.70. Soon we will see a breakout either towards 93 or towards 91.
Blue line = support
Red line = resistance
The Dollar index is still between the short-term resistance and support levels or, otherwise, it is forming a cotracting triangle. Soon we will have a breakout and we can then start a new short-term move. Breaking above 92.40 will be a bullish signal. On the other hand, a break below 91.70 will be a bearish signal. The short-term upside target is 93 and the short-term downside target is 91.
The weekly chart remains fully bullish. If Dollar were to weaken now, a pullback towards 90 would be justified. The 90 level is the first important weekly level where I would expect a weekly pullback to an end. For now, the weekly candle does not imply any downward reversal but bulls should be very cautious in case 91.70 fails to hold.
The material has been provided by InstaForex Company - www.instaforex.com
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