The Dollar index remains inside the bullish channel, above the cloud support and has made one attempt to break above the triangle formation and is now back testing it. The trend remains bullish. I believe we could soon see a move towards 88.65 but bulls should be very cautious.
The 87.65 is critical short-term support. If the index breaks below that level, then we can say that the break out of the triangle was fake and we could see a strong short-term bearish reversal that could bring the index back at 87 at least. I believe Dollar bulls will be firmly in control again as we move towards the final upward move that I expect will start today or Monday the latest. This view is canceled if we break the support at 87.65.
In the daily chart all ichimoku indicators remain fully bullish. The bullish flag pattern remains valid. Price is above the tenkan-sen at 87.55, so we have a confluence of short- and medium-term support levels in the area of 87.50-87.65. This is a supporting zone that in order for our bullish scenario to come true, the index must hold above it on a daily basis.
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