The U.S. Dollar Index has broken above 81 and this is the first good bullish sign. Short-term resistance is found at 81.30 and at 81.50 as shown in the 4 hour chart below. Breaking above these levels will be bullish for the intermediate-term trend and it gives us 82.5 as the first target.
If the 81.50 high is achieved, then long-term bulls should use 79.70 as a stop. Target for longer term traders is 85. Short-term resistance is at 81.30 and short-term trend will change if prices break below 80.85.
The decline from 81.50 to 79.70 is a corrective pattern. The rise from 79 to 81.50 is impulsive. This implies that more upside might be expected. Confirmation will come if prices break above the blue resistance area.
The material has been provided by InstaForex Company – www.instaforex.com
The U.S. Dollar Index has broken above 81 and this is the first good bullish sign. Short-term resistance is found at 81.30 and at 81.50 as shown in the 4 hour chart below. Breaking above these levels will be bullish for the intermediate-term trend and it gives us 82.5 as the first target.
If the 81.50 high is achieved, then long-term bulls should use 79.70 as a stop. Target for longer term traders is 85. Short-term resistance is at 81.30 and short-term trend will change if prices break below 80.85.
The decline from 81.50 to 79.70 is a corrective pattern. The rise from 79 to 81.50 is impulsive. This implies that more upside might be expected. Confirmation will come if prices break above the blue resistance area.
The material has been provided by InstaForex Company – www.instaforex.com
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