The US Dollar Index was rejected at its recent highs and pulled back towards the cloud support once again. The short-term trend remains bullish as long as the price is above 95.80. We are at a critical junction as support is very close and we should either see a strong downward reversal or a continuation of the uptrend.
The US Dollar Index is testing the upward sloping trend-line support and is above the Ichimoku cloud. Short-term support is seen at 95.80 and resistance is seen at 96.75. A break above resistance will open the way to new short-term highs around 98. A break of the support will put pressures on the index leading to the test of support at 94.50.
The US Dollar Index is back testing the breakout level of 95.80 in the weekly chart above and is also testing the Ichimoku indicators of kijun- and tenkan-sen. Support in the area of 95.80-95.70 is very important. A weekly close below these levels is not a good sign for dollar bulls.
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