Red line- resistance
Green line- horizontal support
Blue line- support trend line
The Dollar index is trading around 113.40 in an attempt to break above short-term resistance. Price has formed a higher low at 111.70 and yesterday at 112.14. Price action so far respects support levels and the key upward sloping support trend line. This price behavior increases the chances of an upward break out. As long as price is above the blue upward sloping trend line, bulls will have the upper hand in the near term. A break above 113.50 will increase the importance of the recent low at 111.70. Bulls remain in control of the trend, so far no sign of a reversal. A break below 111.70 would a first indication of a possible short-term top.
