The Dollar index bounced as expected from 97 but has not reached our target of 98.50-99 yet….or it may never bounce that high if the back test fails….The Dollar index is now back testing the previous resistance that was broken at 97.50. So far it stays above it and this is a good sign…however a break below will be a sign of weakness….and if we break below 97 the chances of seeing 98.50 in this upward move are zero..It would be more probable to see 95-94 before any move higher.
The Dollar index should hold above 97.50 and break above yesterday’s highs in order for 98.50 to be achieved over the coming sessions. On a weekly basis price has reached a very critical junction. It has reached the lower cloud boundary and this is very important resistance. A rejection here will be negative for the index and might bring in more sellers to push it below 96.50.
At 96.50-97 I was bullish….seeing the recent price action I will have to turn bearish again unless we break above yesterday’s highs.
Thank you for taking the time to catch up on my thinking.