The Dollar index has topped or it is at its final stages of the rise from 91.90. Price has reached the highs at 100.50 and has marginally broken to new highs. Oscillators are warning for a reversal. This is not the time to buy the US dollar. This is the time for bulls to raise their stops and protect longs.
Red lines - trading range
The Dollar index has broken out above the trading range. A pullback below 99.90 will confirm whether this breakout was a false one. This could lead to a pullback at least towards 98. Oscillators are giving warning and bulls need to be very cautious.
Red lines - trading range
Green line - important trend line support
The weekly breakout is an important bullish sign but I believe the fuel left for a continuation are gone. There is no fuel left and we should prepare for a Dollar index pullback if not full-scale reversal. The Stochastic oscillator is diverging at overbought levels. Short-term support is at 99.05 and next at 98. Resistance remains at 100.50.
The material has been provided by InstaForex Company - www.instaforex.com