The US dollar index remains in a bullish trend and might be forming a short-term bullish flag that could push the price towards the level of 100. The trend is clearly bullish in the medium term, but we are moving sideways in an intraday perspective.
Blue lines - bullish channel
Red lines - bullish flag pattern and projection
The US dollar index is inside a bullish channel and above the Ichimoku cloud. In the short-term, it has formed a bullish flag. Breaking above 99.30 will signal the breakout of the flag pushing the index towards 100 and the upper channel boundaries.
The weekly chart remains bullish after the breakout above the resistance trend line. The price is above the weekly cloud, but we are approaching our 2014 highs and this is important resistance. Bulls need to be cautious, but they are still in control of the long- and short-term trend.
The material has been provided by InstaForex Company - www.instaforex.com