The Dollar index remains vulnerable as price continues to trade inside the triangle pattern. Trend remains neutral. No clear direction for the medium-term. Traders need to be very patient and cautious.
Green line – short-term support (broken)
Blue line- long-term trend line support
Black line – horizontal resistance
Dark blue line – trend line resistance
The Dollar index remains above the critical blue trend line support but continues its choppy action around the 4 hour Ichimoku cloud. This price action confirms the neutral trend we are currently in. This kind of trend phase can destroy short-term traders as most short-term signals are fake. That is why we need to focus on the bigger picture and the longer-term support and resistance levels.
Green line – trend line support
Last week’s weekly candle closed below the tenkan-sen (Red line indicator). Price remains below the weekly Ichimoku cloud but also above the green long-term trend line support. A break below 94.60 will be an important bearish signal while a breakout above the Ichimoku cloud resistance at 96.50 will be a bullish signal. Traders should wait to trade in favor or against these levels and not sooner.
The material has been provided by InstaForex Company – www.instaforex.com