The Dollar index made a deeper than expected pull back yesterday but held support. Now, the index is trying once again to move towards the upper boundaries of the trading range. Longer-term trend remains bullish and I still believe we can achieve the bullish flag target of 91.
Black line = price channel
Despite breaking above the sideways channel yesterday, the Dollar index pulled back inside it and has tested the short-term Ichimoku cloud support at 87.75. Important short-term support is found at 87.70 and resistance is at 88.40. The Dollar index is making higher lows and we need to see now a higher high as well.
The weekly chart is still showing that buyers continue to appear when prices fall below 88 and manage to push it back above 88. The bullish flag pattern remains intact and I continue to expect the 91 level to be reached. Critical support at 86.30 on a daily basis.
The material has been provided by InstaForex Company - www.instaforex.com
