After a stellar up move, the US dollar index is going to close in red candlestick on a weekly basis for the first time. This view would erase in case the price closes above 86.67 but chances are very remote. The US dollar has paused its rally after 11 consecutive weeks. The index is trading below the previous month high 86.22. During yesterday's session, the pair broke below the 20Dsma on an intraday basis; however, at the end of the day, it successfully closed above 20Dsma meaning that bulls are using dip to accumulate. The index has minor resistance above the level of 85.70. The price is likely to move up to 85.90, 86.10 and 86.22. In case the bulls close this week above 86.22, we can see another bull rally in the coming weeks. We recommend fresh buying above 85.62 levels. On the bearish front, if the price closes below 20Dsma, the near term weakness is seen to increase.
For an intraday view, the US dollar index closed above 12ema. In yesterday's session, the 21hrsma and descending trend line acted as strong resistance in the h4 chart. Risky traders can start buying above 85.63 and safe traders can start buying above 85.83 34hrsma. For bears, it seems a good opportunity to selling below 85.58 target 85.40, 85.22,85.10 and 84.95 levels.
The material has been provided by InstaForex Company - www.instaforex.com
