The Dollar index has managed to close the gap from Monday and is testing important short-term resistance levels at 98.20-98.50 now. A weekly close above this resistance area will enable the US dollar to strengthen to follow over the coming weeks with possible target at 100 and higher.
Green line = resistance
Red line = support
The Dollar index has moved above the Ichimoku cloud and above the green trend-line resistance. This is a good sign for bulls. Support at 96 was early held this week after the gap down and bears are in a difficult position now. Short-term support is found at 97.20. Short-term resistance is at 98.20 and 98.50.
Orange lines= upward sloping channel
The Dollar index remains inside the upward sloping channel. The price got above the tenkan-sen. The trend remains bullish. As long as the price holds above 97 on the weekly chart, things will remain bullish for the longer-term. The weekly candle is bullish for now.
The material has been provided by InstaForex Company - www.instaforex.com
