The Dollar index is making a sideways triangle consolidation. It is more probable to see a break to the upside and a new higher high. The index remains in a bullish longer-term trend and has formed a bullish flag that targets 91.
The Dollar index remains inside the upward sloping black channel and is forming a sideways triangle consolidation. The fact that the index is still above the Ichimoku cloud increases the chances of seeing an upward break out rather than a downward break. Resistance is at 88 and if broken we should at least see 88.65 if not higher. Support at 87.60 is critical because if we break it we could see a move lower towards 86.50.
Blue lines= weekly support levels
The Dollar index as shown above in the weekly chart is following the bullish flag pattern we have noted a couple weeks back. Weekly support is at 86.10. If broken we will push lower towards 84. I believe that if the index reverses lower it will most probably make a bottom around 86 and not move lower towards 84. I remain longer-term bullish and pay close attention to the triangle formation. Triangle formations are usually seen at the end of trends, so the expected new high might reverse any time. Bulls need to be extra cautious if 87.60 breaks.
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