The Dollar Index mainly influenced by the sharp rise in EURUSD and the steep drop in USDJPY has broken 81.50-40 support and produced a new low at 81.09. This is not a good sign for the bullish expectation we have for USD and puts in danger our longer-term bullish scenario. Short-term trend is down and intermediate term trend too. The prices trade within a downward sloping channel that needs to be broken for trend to change.
Short-term support is found at 81.05 and 80.90. Short-term resistance is found at 81.35 and 81.50. The intermediate-term change will happen if the prices break above 82.50. Until then we remain neutral. We are still expecting a bullish reversal according to our longer-term view on USDX. 80.50 is a crucial price level and in the chart below we show the longer-term trend channel that is being tested.
In the above daily chart you can observe that this upward sloping trend channel is the last chance for bulls to see a bullish reversal of the price. We expect that at least the channel support will prove strong enough for an upward trend reversal. Concluding although support levels fail we continue to feel a bullish reversal is near. However, we will enter long only if resistance levels are broken at 81.50 and 82.50.
The material has been provided by InstaForex Company – www.instaforex.com
The Dollar Index mainly influenced by the sharp rise in EURUSD and the steep drop in USDJPY has broken 81.50-40 support and produced a new low at 81.09. This is not a good sign for the bullish expectation we have for USD and puts in danger our longer-term bullish scenario. Short-term trend is down and intermediate term trend too. The prices trade within a downward sloping channel that needs to be broken for trend to change.
Short-term support is found at 81.05 and 80.90. Short-term resistance is found at 81.35 and 81.50. The intermediate-term change will happen if the prices break above 82.50. Until then we remain neutral. We are still expecting a bullish reversal according to our longer-term view on USDX. 80.50 is a crucial price level and in the chart below we show the longer-term trend channel that is being tested.
In the above daily chart you can observe that this upward sloping trend channel is the last chance for bulls to see a bullish reversal of the price. We expect that at least the channel support will prove strong enough for an upward trend reversal. Concluding although support levels fail we continue to feel a bullish reversal is near. However, we will enter long only if resistance levels are broken at 81.50 and 82.50.
The material has been provided by InstaForex Company – www.instaforex.com
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