The Dollar index remains inside the bullish channel and has reached the 50% retracement thus far. Next important resistance is the 61.8% Fibonacci retracement. There are increasing chances of a bearish reversal but if we close this week above 98, then bulls will be back in control of the trend with stronger chances of making new highs towards 102-103.
Price is in a short-term bullish trend as long as we are above 97.10. Price has broken above the Ichimoku cloud and is testing the 50% retracement. Next resistance at 98. Bulls should be very cautious as this up trend can terminate any time now. On the other hand, bears should not try to front run the market as the weekly chart below suggests that there are equal chances of a new up trend starting.
