In our previous analysis on the Dollar index we showed how price was respecting a key upward sloping trend line support as price was breaking above the 50% Fibonacci retracement and moving towards the 61.8% retracement. We also noted how likely it is for price to follow the past and make a pull back for the next couple of weeks.
Blue line - support trend line
The Dollar index has the potential to make a reversal and a pull back from current levels. However price has not confirmed such a reversal, as price continues making higher highs and higher lows. The blue upward sloping trend line continues to be respected by price and as long as this is the case, bulls will remain in control of the trend. Next target is the 61.8% retracement and the 97.70 level. Short-term support is found at recent low at 95.49 and breaking below it will most probably lead to more downside towards the blue support trend line.
