The Dollar index continues to trade sideways inside the triangle pattern. There is no clear trend in the Dollar index. So traders prefer to stay neutral and trade once we see a breakout from this triangle pattern.
Red lines = triangle pattern
The Dollar index has short-term support at 93.80 and short-term resistance at 95. If support fails to hold at 93.80, we will most probably see a push lower towards 92.80 or even 91.50. If resistance is broken, I would expect a push higher towards 97 with the ultimate target of 100.
The weekly chart above shows how price remains inside the upward sloping channel and the longer-term trend remains strongly bullish. All ichimoku cloud indicators point higher and my longer-term target of 100-101 is very feasible once we break above 95-95.50. A pullback towards the tenkan-sen (red line) at 92.50 would be a buy opportunity for the longer-term trend.
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