The Dollar index is trading above critical support. There is a possibiliti for Head and Shoulders pattern to be formed. Confirmation will come once a break of the neckline is made at 96.70. A daily close below that level will put the recent low to the test and probably push even towards 94-93.
Green line = neckline
Blue line= price projection if neckline is broken
The Dollar index is trading above short-term and medium-term important support of 96.70. The recent low at 96.20 is also a big support level. So, bulls will need to be extra cautious if they see these two levels being broken. A deeper dollar correction could push the index towards 94 or even 93.
Orange lines= bullish channel
The rice has broken the weekly bullish channel as shown in the chart above. The weekly candle has also closed below the tenkan-sen indicator and this is another bearish signal. Target of such break down is the kijun-sen (yellow line) at 94. Bulls need to be very cautious as we might see a deep dollar correction if week closes below 96.
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