The Dollar Index managed yesterday to break above short-term resistance levels and make a daily candle close above the red candlestick we noted in yesterday’s analysis. Prices managed to close above 82 and are now testing the next important resistance at 82.35.
It is a good sign that after all the expectations we see the upward break. The blue downward sloping trend line is broken. Prices bounced off the 76.4% Fibonacci retracement and Wednesday’s bearish red candle is taken back and prices made a higher high covering the entire length of the red candle. The MAs are crossing once agan signalling the trend change. Short-term trend has changed to up and this is now confirmed. What should be expected now is to test the intermediate-term trend and challenge it. Resistance is found at 82.35 and 83.45.
The short-term upward move looks impulsive and that is another positive sign for the trend reversal we were talking about. The rise has paused at the 82.35 resistance level. Any pullback should be bought with the lows as stop. Concluding we are bullish as we were expecting this trend reversal. The rise is impulsive and we are expecting to continue to rise. The pullbacks should be corrective and a pattern with higher highs and higher lows should start to form if a bullish momentum is to be built.
The material has been provided by InstaForex Company – www.instaforex.com
The Dollar Index managed yesterday to break above short-term resistance levels and make a daily candle close above the red candlestick we noted in yesterday’s analysis. Prices managed to close above 82 and are now testing the next important resistance at 82.35.
It is a good sign that after all the expectations we see the upward break. The blue downward sloping trend line is broken. Prices bounced off the 76.4% Fibonacci retracement and Wednesday’s bearish red candle is taken back and prices made a higher high covering the entire length of the red candle. The MAs are crossing once agan signalling the trend change. Short-term trend has changed to up and this is now confirmed. What should be expected now is to test the intermediate-term trend and challenge it. Resistance is found at 82.35 and 83.45.
The short-term upward move looks impulsive and that is another positive sign for the trend reversal we were talking about. The rise has paused at the 82.35 resistance level. Any pullback should be bought with the lows as stop. Concluding we are bullish as we were expecting this trend reversal. The rise is impulsive and we are expecting to continue to rise. The pullbacks should be corrective and a pattern with higher highs and higher lows should start to form if a bullish momentum is to be built.
The material has been provided by InstaForex Company – www.instaforex.com
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