The Dollar index continues to trade inside the triangle consolidation pattern we noted yesterday. A break above 84.37 will give a buy signal. This could be a bullish flag pattern with the target near 85 meaning that resistance is broken.
Red line = resistance
Blue line= support
The 4-hour chart shows clearly the triangle pattern being formed. According to the Ichimoku indicators, the trend remains bullish and there are more possibilities of an upward break towards 84.75 or even 85. Support that should hold is found at 84.
Red line = resistance
The daily chart above remains fully bullish. Price making a sideways consolidation that we expect to be broken upwards as this looks like a bullish flag pattern. The Ichimoku cloud is below price and the tenkan-sen and kijun-sen remain in bullish trend. The Chikou span remains above the price candles and this is another bullish sign. We favor long positions above 84 with 85 as target.
The material has been provided by InstaForex Company - www.instaforex.com
