Long-term view for the Dollar index.

The Dollar is strengthening making new weekly highs. Price has made another major low around the 90 level and has respected the long-term support at 89-90. Price has started another upward movement as we expected, following the similar conditions from the past.

Black line - major horizontal support

Blue lines - bullish divergence

Green lines -expected path

The Dollar index is moving higher as it did back in 2017. The bullish RSI weekly divergence is similar and price again then tested the 89-90 support area. As we mentioned this pattern in previous posts, it is important to remind past is a guide and markets usually repeat patterns. Respecting the black horizontal support was a key characteristic for this bullish move.

The Dollar index has now reached the 38% Fibonacci retracement of the entire decline from 2020 highs. This is the first Fibonacci resistance and it is very important to see if we break above it or we see a rejection. Trend remains bullish as long as price is above 92.The material has been provided by InstaForex Company - www.instaforex.com