The Dollar index has made a short-term top at least and is turning downwards. The price is trading just below important resistance and a pullback target of 100-99.70 is expected. I believe traders should look for bounces as selling opportunities.
The Dollar index has broken out of the 4-hour Ichimoku cloud turning short-term trend to bullish. There are signs by the oscillators that we should expect a back test of cloud support and near 50% retracement of the rise. This back test is very important as a higher low relative to the March low will be a bullish sign.
Black line support
The Dollar index is trading just below the daily cloud resistance and around the daily kijun-sen (yellow line indicator). I am bearish at current levels expecting at least a pullback towards 100-99.70. My longer-term view will be decided by the fact if we make new lows below the March low or a higher low and reversal. Key resistance of course remains at 102-102.30.
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