The Dollar index has managed to reach the important resistance at 81.50 once again, but in the short-term we witness another rejection at this important resistance level. It is not a good sign for bulls that prices get rejected once again. However the Dollar index has visited the 81.50 resistance level twice in a short time period this means that pressures by bulls is strong, so we should be on alert if this level breaks.
Short-term support is found at 80.80-90. Short-term resistance is found at 81.40-50. We could witness a pullback towards 80.70-90 as prices got rejected and the 4 hour candles show us that short-term trend might be reversing downwards. Thereofore, bulls could see this as an opportunity to take profits near resistance and try to buy again after the expected pullback. If prices manage to break resistance then the lost ground for bulls will be small, but if prices turn aggressively downwards, then bulls would have lost much more.
Long-term support is now the 80.40 level that if broken will make us believe that the index will be heading towards 79. Important long-term resistance is 81.50 and that is why the index is taking so much time to break above it. It is very important and strong resistance that traders should not trade against it. So either go short with 81.50 stop reverse or close longs and wait if resistance breaks in order to go long again.
The material has been provided by InstaForex Company – www.instaforex.com
The Dollar index has managed to reach the important resistance at 81.50 once again, but in the short-term we witness another rejection at this important resistance level. It is not a good sign for bulls that prices get rejected once again. However the Dollar index has visited the 81.50 resistance level twice in a short time period this means that pressures by bulls is strong, so we should be on alert if this level breaks.
Short-term support is found at 80.80-90. Short-term resistance is found at 81.40-50. We could witness a pullback towards 80.70-90 as prices got rejected and the 4 hour candles show us that short-term trend might be reversing downwards. Thereofore, bulls could see this as an opportunity to take profits near resistance and try to buy again after the expected pullback. If prices manage to break resistance then the lost ground for bulls will be small, but if prices turn aggressively downwards, then bulls would have lost much more.
Long-term support is now the 80.40 level that if broken will make us believe that the index will be heading towards 79. Important long-term resistance is 81.50 and that is why the index is taking so much time to break above it. It is very important and strong resistance that traders should not trade against it. So either go short with 81.50 stop reverse or close longs and wait if resistance breaks in order to go long again.
The material has been provided by InstaForex Company – www.instaforex.com
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