Trading Conditions
Products
Tools
The US dollar index collapsed yesterday as it broke below and out of the upward sloping channel. The price was signalling that a bearish reversal was coming as we pointed out the bearish divergence in the stochastic and the RSI a couple days back.
Red lines - bearish wedgeThe US dollar index has broken below the cloud support and the upward sloping wedge. The critical support of 98.40-98.50 was broken and the price fell 1 point down. Today, we see the price bouncing, but I believe the downside move is not over yet.
In the weekly chart above, we see how the price has broken below the tenkan-sen support (red line indicator) and is now heading towards the kijun-sen (yellow line indicator) and the Ichimoku cloud near 96.50. The trend is bearish.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.