The Dollar index remains in an up trend for the short-term as long as it trades above 89.60. The index continues to make higher highs and higher lows. The new upward breakout keeps both short- and long-term trend bullish with 91 as 1st target.
Green line = support
The dollar index has broken below the tenkan-sen at 89.96 on the 4-hour chart. This implies that unless we break again above it, we could see a pullback towards the kijun-sen and the green line support at the 89.70-89.60 area. Breaking below that support area will probably push the index towards the Ichimoku cloud support.
The weekly chart of the Dollar index remains fully bullish with 91 target given by the bullish flag pattern we mentioned some time ago. The tenkan-sen support has risen towards last weeks lows which are now very important for the medium-term trend. If we break below these lows, we should expect the Dollar index to move lower towards 85-84 or even 81-82. Until then, I remain bullish with 91 as 1st target.
The material has been provided by InstaForex Company - www.instaforex.com
