The Dollar index remains in a bearish trend. The price is making lower lows and lower highs. There are bullish divergence signs that should not be ignored as this downward move has lasted more than initially expected and should soon provide a strong bounce for the index.
Short-term support is at 92.75 and resistance at 93.45. Price is making lower lows and lower highs. No reversal sign yet. I believe that soon we should see a dollar bounce.
Green rectangle – support area
The Dollar index has entered important long-term support area and is approaching close to the 200 MA. A bounce towards the minimum target of 95 is expected from around these levels and traders should be cautious as I believe we are at a turning point. Bears need to tighten their protective stops.
The material has been provided by InstaForex Company – www.instaforex.com