Source: Forex Analysis
The Dollar index made a double top at 90.60 and got rejected. The price, however, still remains above the Ichimoku cloud. Bears will need to break below 89.60 for another leg down towards 87, while bulls need to keep prices above 89.60 and produce a higher low before resuming their upward bounce.
The price is above the 4-hour cloud. Short-term trend is bullish. Support is at 90 and at 89.60-89.50. The second support by the Kumo (cloud) is the most important one. We could see a pull back towards that level today or tomorrow. Resistance at 90.60 if broken will push price towards 91-91.50.
The daily candles in the Dollar index show rejection signs at the important kijun-sen (yellow line indicator) resistance. Support is at the tenkan-sen (red line indicator) at 89.60. A daily close below it will increase the chances that the bounce was short-lived and we are heading to new lows.
The material has been provided by InstaForex Company – www.instaforex.com