The Dollar index remains in its short-term sideways move after testing both upper and lower boundaries of the trading range. There is still no clear breakout, although, longer-term trend remains bullish. It is better to avoid this neutral short-term trend.
Red line = resistance
Blue line = support
The short-term resistance is at 92.40 and short-term support at 91.70. The 4-hour chart above shows clearly the sideways move in which the Dollar currently is and also the boundaries of this trading range. Neutral trend means that we should prefer to abstain from trading and wait for a clear signal once a breakout is made.
The weekly chart remains fully bullish with no sign of reversal. Weekly support is found at 89.90. This is the tenkan-sen support and the lower boundary of the upward sloping channel. If it is broken, we should expect the Dollar index to pull back towards the kijun-sen support at 86.70. The Chikou-span is positively sloped and, thus, bullish.
The material has been provided by InstaForex Company - www.instaforex.com
