The Dollar index has given a small bullish sign on Friday and today ше is back testing this break out. The downward sloping wedge was broken upwards. Prices stopped their decline at the 61,8% Fibonacci retracement. A bounce was justified from this area. Prices made a small upward impulsive move and today we see a retracement of this move. If prices break below the start of this move, then we will say that it was just an upward correction. However, this means that bulls could use the 79.75 as stop.
The black upward sloping trendline that has been formed at the 79 low and Wednesday’s low is important for our short-term bullish view. Important short-term resistance is found at 80.75 where the purple resistance trendline is found, after connecting the highs from 81.50 and lower.
In the longer-term chart we see the distinct upward bounce that gave us the short term bullish signal. This will turn into something bullish for the intermediate term only if prices break above intermediate term resistance at 80.75. Concluding, trend remains downward in the daily chart and we only have a short-term bullish signal. We need more signs of strenght to say with more confidence that a trend reversal is happening.
The material has been provided by InstaForex Company – www.instaforex.com
The Dollar index has given a small bullish sign on Friday and today ше is back testing this break out. The downward sloping wedge was broken upwards. Prices stopped their decline at the 61,8% Fibonacci retracement. A bounce was justified from this area. Prices made a small upward impulsive move and today we see a retracement of this move. If prices break below the start of this move, then we will say that it was just an upward correction. However, this means that bulls could use the 79.75 as stop.
The black upward sloping trendline that has been formed at the 79 low and Wednesday’s low is important for our short-term bullish view. Important short-term resistance is found at 80.75 where the purple resistance trendline is found, after connecting the highs from 81.50 and lower.
In the longer-term chart we see the distinct upward bounce that gave us the short term bullish signal. This will turn into something bullish for the intermediate term only if prices break above intermediate term resistance at 80.75. Concluding, trend remains downward in the daily chart and we only have a short-term bullish signal. We need more signs of strenght to say with more confidence that a trend reversal is happening.
The material has been provided by InstaForex Company – www.instaforex.com
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