The Dollar index remains trapped inside the short-term triangle pattern formation. The uncertainty regarding a rate hike this year remains and that is depicted in the sideways move of the Dollar index.
Blue line - support trend line
The Dollar index remains below the Ichimoku cloud and the downward sloping trend line resistance on the 4-hour chart as shown above. Price is trapped inside this triangle but still holds above the very critical support of 94.50-94.70. As long as price is above that level I give more chances to an upward breakout.
Green line - medium-term trend line support
The Dollar index is below the Daily cloud resistance but above the green trend line resistance. The levels that if broken will provide a meaningful trading signal are the 94.60 level below and the 95.85 level above. Being below the Daily Kumo is not a good sign, but at least the green trend line still holds. Chances are even for any outcome at this stage. Traders need to be very cautious and patient.
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