The Dollar index has confirmed a short-term reversal as we anticipated in our previous analysis and is heading towards 99. The warning signs for Dollar bears were there and we warned them to protect their short positions as a strong bounce was anticipated. We are now bouncing and we have lots of upside room to move.
The Dollar index has broken out and above the blue trend line resistance and the 4-hour Ichimoku cloud. For the last few sessions I have been calling for a reversal and that I would at least prefer to be neutral rather than bearish. This was not the time to be short the Dollar index. We first need a bounce towards 99. Support is at 97-96.50 and resistance is at 98.50-99.
Blue lines - bearish channel
As expected in our last analysis, the Dollar index was expected to bounce off the lower channel boundary. Price has broken the red trend line resistance and is expected now to move towards the Daily Kumo (cloud). This is not the time to be short on Dollar. The Dollar index has just started its bounce.
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