The Dollar index remains trapped inside the medium-term trend trading range of 98.50 and 95. As long as price is inside this trading range it is best advised to be neutral. Any breakout above or below this range will signal the start of an important new trend.
Green rectangle area - support
The Dollar index had a very volatile week and has started this one on a calmer note. Short-term support is at 96 while short-term resistance is at 97.40. Trend is bearish for the short-term after the rejection at 98.50 and the bearish reversal. Price is making lower lows and lower highs since last week.
Red rectangle area- resistance
Green rectangle area - support
The weekly chart remains neutral as price continues to trade sideways, but still above the Ichimoku cloud. The triangle pattern that has been formed will soon provide a breakout or breakdown so traders should wait for that signal to trade. Until then traders should be very cautious as we have very important news from the Fed this week.
The material has been provided by InstaForex Company - www.instaforex.com