The US dollar index remains weak and is now testing last Wednesday's lows after the FOMC meeting. The greenback has broken all short-term support levels after the bounce and has reached once again the important support area of the 61.8% retracement.
Red line = resistance
Purple area = support
The USD index is testing the previous low and the support area at 96.50-96.40. The trend remains bearish for the short term. If the USDX is going to reverse back upwards, it will do it from this area, the 61.8% retracement. We will have confirmed reversal only if the price breaks above the Ichimoku cloud.
The weekly chart as shown above reflects how this weekly candle is testing the tenkan-sen indicator. However, the week has just started and we should be very patient. Next support is at 92.50. This week is going to be very important regarding the medium- to longer-term trend in the USDX.
The material has been provided by InstaForex Company - www.instaforex.com
