The Dollar index bounced yesterday but could not retake the 95.70 level. Price tried to bounce but got rejected once again. Short-term trend is bearish but medium-term trend remains neutral as price is still trapped between 94.60 and 96.60.
Green line -short-term support (broken)
Blue line - medium-term support
Price is bouncing towards the green trend line support that is broken. Price is also bouncing off the lower Ichimoku cloud boundary. This back test could continue today as price could continue the bounce towards 95.70-95.90. Short-term support is at 95.30. A 4 hour close below this support will open the way for a test of the blue trend line support.
The weekly candle is weak and below the weekly tenkan-sen (red line indicator). Price remains below the weekly cloud which favors bearish sentiment and the bearish scenario. However bulls still manage to hold above the green trend line support despite the Fed not hiking. If Dollar bears are not able to push the index below the green line when the Fed is not hiking...what will? Technically bulls are still alive but will also need to overcome the cloud resistance at 96.50 to get in control of the medium-term trend.
The material has been provided by InstaForex Company - www.instaforex.com