The US dollar index continues trading sideways. The price reversed upwards late on Friday night after the attempted coup in Turkey as investors fled to the safety of the dollar. However, price has not managed to break above 96.70 where we have a triple top.
Blue lines – sideways channel
Red lines – longer-term trading range
The dollar index made a triple top at 96.70 and a rejection here will surely push it towards 95.50 and most probably even lower if the lower boundary is broken. The short-term support is at 96.30. If resistance is broken we should expect a sharp rise towards 97.70.
Red line – resistance (broken)
The weekly candle of last week tested support by the kijun-sen (yellow line indicator) and reversed higher mainly because of the coup attempt in Turkey last Friday. Price closed inside the weekly Kumo and this week starts with trading right on the lower boundary of the weekly Kumo. Resistance is at 96.70 and support, at 95.80.
The material has been provided by InstaForex Company – www.instaforex.com