The Dollar index is showing bearish reversal signs. Not as strong as the previous days, we could see a deeper pull back towards 99.80 first before a move for new highs near 103.50-104. However the bigger picture that could be formed is of a bearish wedge.
Black lines - channel
Much will be decided after the FOMC meeting tonight. A break below 99.44 will be a very bearish signal implying a false breakout to new highs. This could signal the start of a reversal toward 96. Short-term support is at 99.80 while resistance is at 102.30.
The Dollar index is at very important long-term Fibonacci resistance level. A rejection here could be a very bearish sign that could put the index in a multi-week bearish trend back toward 92. Important long-term support is at 96-96.50. Breaking below it will open the way for a push below 92. However, until we have confirmation of such trend reversal, targets remain above 104 as trend remains bullish. Bulls need to be warned though, as oscillators are overbought and diverging.The material has been provided by InstaForex Company -
www.instaforex.com
