The Dollar index looks weak and ready to push lower as the short-term trend is bearish with lower lows and lower highs. Today's FED meeting will be crucial for the Dollar next movement. The FED announcements expected later today should provide us with enough information on what to expect next with the Dollar.
Red line = resistance
Blue line = support
The Dollar index is below the Ichimoku cloud and below the red line resistance. Although the short-term support at 87.90 was broken, the index has managed to move back above 88. Short-term trend is bearish as price is making lower lows and lower highs since early December. It could be the start of a new downward move as part of a correction of the rise from 79.75.
Red line = weekly support
The Dollar index in the weekly chart shows that trend is unclear. Support was briefly broken yesterday but the index closed above it yesterday. The best strategy is to remain neutral and wait for the Fed announcements today and then take action. The Dollar index is at an important junction that would justify a trend reversal and Dollar weakness.
The material has been provided by InstaForex Company - www.instaforex.com
