The Dollar index made a small bounce yesterday but remains below the Kumo resistance in the short term. Bulls still manage to hold the index above the critical support of 94.50-94.65 where a very important trend line support passes through.
Blue line - medium-term trend line support
The Dollar index is below the 4-hour Kumo (cloud) and above the important trend line support at 94.50-94.60. A short-term trend is bearish and will change to neutral on a break above 95.25. A short-term trend can turn bullish on a break above 95.55 (or generally above the cloud in the 4-hour chart).
This week's candle is testing a very important support trend line that is clearly of great importance. This trend line is of great importance because price behavior has shown us that when the index approaches it, buyers step in and push the index price higher. A break below this trend line and a weekly close below it will be a very bearish signal.
The material has been provided by InstaForex Company - www.instaforex.com