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The US dollar index made a small pullback yesterday to just below 99 and held above short-term support of 98.80. The initial rejection in the area of 99.35 came as we expected. But I continue to expect a deeper correction and not a break above 100.
Blue line - support trend line
The US dollar index is holding above both the Ichimoku cloud and the blue support trend line. A trend remains bullish but I believe we should expect a reversal and a break below the cloud and the trend line. This will give a sell signal with a high probability of reaching 97 and lower.
In the daily chart, the price remains above the Ichimoku cloud. Support is seen at 98.80. A daily close below that level will be a bearish signal. Next support is seen at the kijun-sen (yellow indicator) at 98.40. The structure of an upward move in the US dollar index is choppy and overlapping since early December. I believe that one more leg down should be expected similar to the decline from 100.50 to 97.20.InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.