As we expected, the Dollar index has pulled back towards 99 where short-term support is found. The long-term trend remains bullish. However, we could see a deeper pull back this week if tomorrow the FOMC pushes data about a rate increase to a later point in 2015.
Green line = trend line support
The Dollar index is in a short-term bullish trend. The price is making higher highs and higher lows. It is also above the Ichimoku cloud support and the trend line support. Short-term support is found at 98.65. If it gets broken, we could see a deeper push back towards 98. The Ichimoku cloud indicators are not positively sloped anymore and this is a worrying sign of a short term. We could have seen a short-term top very well .
This does not mean that there is a problem with the longer-term trend, but we should not forget that we have reached very close to the monthly 61.8% retracement, which is a huge resistance. So, selling around this area is expected and normal to be seen. Bulls need to raise their stops and protect their positions. Traders should prefer to be neutral or bullish around these levels.
The material has been provided by InstaForex Company - www.instaforex.com
