Source: Forex Analysis
The Dollar index briefly fell below the important 89.60 support but is now trading right above that level. The pull back towards the Ichimoku cloud came as we expected and today’s inflation announcement for the US economy will be the main catalyst for what the Dollar will do next.
Red line – resistance trend line
The Dollar index is challenging the support by the 4hour Kumo (cloud). Support is here at 89.60-89.50. A bounce from this area of support would be a bullish sign. Resistance is at 90.50. If support fails to hold, we could see a push towards low 88’s even today.
On a daily basis the Dollar index is challenging the tenkan-sen support. A daily close below 89.60 would be a bearish sign after the rejection at the kijun-sen. Bulls need to break above yesterday’s high at least in order to reclaim control of the trend.
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