The Dollar index had a strong bullish week however price remains far below the last high at 97.05 and with bearish divergence signals in the short-term a pull back is highly likely. The Dollar index is still inside a complex overlapping structure both in the short-term charts and in the medium-term charts. This implies that we are still in a corrective phase and as long as we are above 92 it is still possible we just consolidate before the next big upward move.
Last week the Dollar index rose towards the 4 hour Kumo (cloud) resistance in a straightforward manner. Oscillators have turned overbought and price has not managed to break above the resistance trend line that touches all previous tops. A pause in the up trend is expected this week. A pull back if not a new lower low is expected.
The weekly candle of last week showed bulls are not giving up yet as price has managed to re-emerge above the upper cloud boundary resistance. Price however still remains inside the long-term sideways channel with no clear direction. Moreover price is still below the kijun- and tenkan-sen resistance indicators and still below the weekly high at 98.60. A break above that high will increase the chances of a larger degree breakout to new highs above 103-104.
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