The Dollar index made new lows yesterday interrupting the recent sequence of higher highs and higher lows that started back at 91. Short-term trend is now neutral as price has entered inside the 4-hour Kumo.
Black rectangle - support area
In the 4-hour chart the Dollar index is in neutral trend as it is inside the Kumo (cloud). Next support level is at 93-92.90. Resistance is at 93.50-93.70.
Black lines - bearish channel
On a daily basis, we have the first bearish confirmation as price has closed below the tenkan-sen (red line indicator). Still trading inside the bearish channel and being rejected at the upper channel boundary is a bearish sign. Daily support is at 92.80. Closing below it will be a very bearish signal implying new lows ahead.
The material has been provided by InstaForex Company - www.instaforex.com