The Dollar Index could not break above resistance for another day. Prices fell towards the 61,8% Fibonacci retracement and we now observe a small bounce off that price level. This could be the start of a new upward move, but we need to see more evidence in order to confirm a trend reversal.
Prices need to break above the 81.50-60 resistance zone in order to stop the sequence of lower lows and lower highs that has started at 81.75. Prices need to break above the last high at the 81.60 area and then, I think, we will see upward acceleration towards 81.90-82. Resistance is strong in that area and I believe that only if that level is broken we will be able to be more confident of a trend reversal.
On the daily chart, prices still could not manage to break above the blue downward sloping trendline and despite openning above it, at the end of the day the short-term downtrend pushed that candle back below resistance. On the daily chart we still have no positive signs as prices continue to trade below the resistance level. It is imperative to see, at least, one daily close above 81.70 in order to bulls to have chances of testing 82 and 82.50.
Concluding, we remain neutral and we are waiting for bullish signs (breaking the 81.60 resistance) in order to take a small long position with 82 as the first target.
The material has been provided by InstaForex Company – www.instaforex.com
The Dollar Index could not break above resistance for another day. Prices fell towards the 61,8% Fibonacci retracement and we now observe a small bounce off that price level. This could be the start of a new upward move, but we need to see more evidence in order to confirm a trend reversal.
Prices need to break above the 81.50-60 resistance zone in order to stop the sequence of lower lows and lower highs that has started at 81.75. Prices need to break above the last high at the 81.60 area and then, I think, we will see upward acceleration towards 81.90-82. Resistance is strong in that area and I believe that only if that level is broken we will be able to be more confident of a trend reversal.
On the daily chart, prices still could not manage to break above the blue downward sloping trendline and despite openning above it, at the end of the day the short-term downtrend pushed that candle back below resistance. On the daily chart we still have no positive signs as prices continue to trade below the resistance level. It is imperative to see, at least, one daily close above 81.70 in order to bulls to have chances of testing 82 and 82.50.
Concluding, we remain neutral and we are waiting for bullish signs (breaking the 81.60 resistance) in order to take a small long position with 82 as the first target.
The material has been provided by InstaForex Company – www.instaforex.com
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