The Dollar index is challenging short-term support at 97.60-97.80 area, while at the same time bulls are unable to break above 98.30 making lower highs. If support fails to hold we should expect price to move below 97 towards 96.50.
Green rectangle -short-term support area
Blue rectangle - target if support fails to hold
The Dollar index has made several touches at the green rectangle area. This confirms the importance of this support area. Failure to stay above, will lead to a move towards 96.40-96.60. A break above the black downward sloping trend line resistance will cancel this bearish scenario. Resistance is now at 98.30. Soon we will see a break of support or resistance in the Dollar index. A break of resistance will push price towards 99.
