The index remains inside the upward sloping channel. Short-term support is at 88.50 and short-term resistance is at 88.85. The decline from 89.50, I believe, is corrective and we could see a new higher high towards 91 as per our bullish flag pattern. Bulls, I believe, have not said their last word yet.
On a weekly basis, the Dollar index remains bullish, although, the double top is not a good sign. If at the end of the week we see this red candle much smaller than it is today, it will be a bullish signal implying that bulls continue to support the trend. However, if the week ends with a candle like this, then we should be very carefull for the next week as this could mean the end of the up trend from 79.75.
The material has been provided by InstaForex Company – www.instaforex.com
Black line = support
Blue line = resistance
The index remains inside the upward sloping channel. Short-term support is at 88.50 and short-term resistance is at 88.85. The decline from 89.50, I believe, is corrective and we could see a new higher high towards 91 as per our bullish flag pattern. Bulls, I believe, have not said their last word yet.
On a weekly basis, the Dollar index remains bullish, although, the double top is not a good sign. If at the end of the week we see this red candle much smaller than it is today, it will be a bullish signal implying that bulls continue to support the trend. However, if the week ends with a candle like this, then we should be very carefull for the next week as this could mean the end of the up trend from 79.75.
The material has been provided by InstaForex Company – www.instaforex.com
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