The Dollar index has rejected the weekly resistance as expected and has also broken below the short-term support, pushing the price towards our short-term pullback targets of 100.40. As long as the price is below 101.50, I expect the Dollar index to challenge the March lows once again and most probably break them.
Gold price has reached the 4 hour Ichimoku cloud support at 100.50-100.40. If the price holds above the cloud, we could see a re-test of recent highs at 101.30 and possibly a break to new highs at 101.50 where the weekly resistance is found.
Black line - neckline support
Green line - long-term support trend line
The Dollar index got rejected at the blue trend line resistance and is now testing the tenkan-sen (red line indicator) support. A weekly close below 100.45 will be a bearish sign for the next week, opening the way at least towards the weekly kijun-sen (yellow line indicator) at 99.90. A break above 101.50 will be a bullish sign. A break above 102.30 will confirm longer-term bullish trend towards 110.
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