The US dollar index remains in a corrective phase. The price remains above the Ichimoku cloud, but we could see a pullback towards the 38% retracement this week. The longer-term trend remains bullish and there are signs that we are about to exit the sideways move we are in for the last few months.
The US dollar index is below the kijun-sen and above the Ichimoku cloud. The best strategy is to remain neutral for now and if the price pulls back, we will be interested to open long positions with 93.80 stop and new highs as the target. Support at 95.40 is very important and it would be ideal to see a pullback to that area.
Green line - weekly resistance
The weekly chart shows how bulls managed to break above the downward sloping red trend-line resistance but could not hold on to it. The price got rejected and we are probably going to make a pullback towards the weekly kijun-sen at 95.50 before resuming the uptrend. Eventually, I expect the US dollar index to start a new upward move that will bring the index back above 101-102.
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