The Dollar index remains near its highs consolidating. The short-term trend remains neutral. Price is still below important resistance at 85. In case a confirmed break occurs above, it will be a very bullish sign. A rejection at the current levels could bring the index towards 82-81.
Red line = resistance
The short-term trend remains neutral. Price is mainly moving sideways hitting the resistance level from below but still getting rejected. Resistance is at 84.80-85 area. Breaking above this area will open the way for a sharp rise towards 86. I prefer to stay neutral and wait for a confirmed signal. Breaking below the Ichimoku cloud at 84.30 will not be a good sign for bulls.
Red line = resistance
In the daily chart above, we see the longer-term trend remains bullish but the sideways action below the strong resistance at 84.80-85 is making us sceptical if bulls have the power to make a break out now. Important daily support is found at 84.20 and if broken this could signal a start of a deeper decline towards 82 or even 81. Bulls should be very cautious now. Very bullish signal if we break and close above 84.80.
