The Dollar index was heavily influenced by the yesterday's SNB decision on rate cut, and volatility was very high. The best strategy is to wait for the dust to settle as this volatility increase is very dangerous and yesterday it make damage for both bulls and bears.
The short-term chart is showing an expanding triangle pattern and the extreme volatility we witnessed yesterday. Prices look like they are coming back to the middle of the range and it seems that the sideways pattern continues. Short-term support is at 91.50 and short-term resistance at 92.70.
Black lines = bullish channel
The Dollar index remains inside the upward sloping bullish channel. Yesterday's increase in volatility and extreme price movement have not changed the long- or short-term trend in the Dollar index. The weekly candle remains positive and supportive of the bullish trend. However, bulls should be very cautious and raise their stops to 91 as a break below that level could signal a deeper correction towards 89.
The material has been provided by InstaForex Company - www.instaforex.com
