The Dollar index made new highs as expected towards 104. Trend remains bullish. However overbought oscillator signals give a warning for bulls to be cautious as a pull back could start any time now.
Red rectangle – support
Blue lines – bearish divergence signs
The Dollar index is making new highs but both oscillators are diverging. Short-term support is at 101.80 and 100.80. If broken we should expect prices to move towards 99.50. Trend remains bullish as price continues to make higher highs and higher lows.
Green line – trend line support
The weekly candle has broken above the long-term 61.8% Fibonacci retracement resistance. It is very difficult to imagine how this weekly candle can turn bearish, but we would like to see next week’s candle validate the break above the resistance. Weekly trend remains bullish as long as price is above 99.44.
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