The US dollar index bounced last Friday towards the resistance areas of 94.75-95 as expected. The price remains below the Ichimoku cloud and we could see a downward reversal any time soon especially if we break below 94.55.
The US dollar index has formed a bearish wedge pattern. If we break below 94.55 support, we should expect heavy selling to push the price towards new lows below 93.80. Resistance at 94.75-95 is important and even if we reach short-term higher highs, I expect the index to get rejected.
Green line -weekly support
The weekly chart remains inside the Ichimoku cloud implying that the weekly trend is neutral. Bulls are trying to break above the Ichimoku cloud and only such a breakout will bring in more US dollar buyers. Weekly resistance is at 95.40 and weekly support is at 93.80. I would stay neutral.
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