The US dollar index showed a short-term reversal sign yesterday by breaking out the short-term upward sloping channel. The US dollar has weakened a bit, but it holds important short-term support at 99 now.
Red lines - bearish divergence
The US dollar index is still trading above the Ichimoku cloud but has broken the bullish channel. The US dollar index however holds above the 99.10 support. Resistance is seen at 99.50 and next the recent high at 99.85.
The US dollar index daily chart shows the important support level of 99.10. If it gets broken, we should expect a pullback towards at least 97. Stochastic is overbought and chances for bearish reversal are very high. Bulls should raise their stops to 99.10 and protect their profits.
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