The US dollar index remains in a bullish trend, but risk reward for bulls is not good at current levels. Bulls need to be very cautious and raise their stops to 99.40 in order to protect their positions.
Blue lines - bullish channel
The US dollar index has broken the bullish channel downwards but remains above the Ichimoku cloud. It is back testing the lower channel boundary. Support is found at 99.70 and then at 99.40. Resistance is seen at 100.50.
The weekly chart shows prices trading near its previous highs. This is important resistance area. We could see a throwover above the previous highs and towards 101-102, but bulls must be on the high alert as the stochastic is oversold and there are increased chances of a pullback towards 97. Weekly support is found at 99.40.The material has been provided by InstaForex Company -
www.instaforex.com
