The Dollar index made a new higher high yesterday 93.92. Price has reached our next target area of 94 as we said when it bounced off the 91.70 support. The price remains in a bullish short-term trend and is now challenging medium-term trend.
The Dollar index has short-term support at 93.50. Resistance is at 94.10-94.20. The trend remains bullish as long as the price is above 92.50. A break below 92.50 will confirm trend reversal back to bearish.
The Dollar index has entered the daily Kumo (cloud) changing daily trend to neutral according to Ichimoku cloud terms. The new highs, however, have not been followed by new highs in the RSI giving a divergence signal. This is the first important warning and message of caution to Dollar bulls. Wedge support is at 93.20.
The material has been provided by InstaForex Company - www.instaforex.com