As I mentioned in my last analysis, the Dollar index was in danger of a deeper correction towards 95 and lower, and this is what finally happened after the resistance level of 96.50 had been rejected.
The blue line - support
The Dollar index is testing very important trend support at 94.15. The price is also challenging cloud support. Short-term resistance is at 95.10. A bounce towards 96.50 will be possible if the price forms a triangle pattern.
The Dollar index is approaching closely the broken black trend line resistance. Is this a back test of the broken trend line? The cloud rejection at 96.50 was an important bearish signal, and the same was the break below the weekly tenkan- and kijun-sen indicators. Bulls will either step in now and save the index, or an even deeper correction targeting levels below 92 should be expected.
The material has been provided by InstaForex Company - www.instaforex.com