The US dollar index is testing short-term resistance and the US dollar is not as week as last week. There is a possibility of a breakout higher if bulls manage to push the price above 95. The longer-term trend remains neutral as the price continues to trade inside a big bullish flag pattern as shown in the weekly chart.
The US dollar index is trading inside the Ichimoku cloud in the 4-hour chart. This means that the short-term trend is neutral. The price is forming a wedge formation with boundaries at 95 and at 94.75. We expect a small rally or a sharp correction lower.
The weekly chart remains inside the weekly cloud and inside the big bullish flag pattern. A trend is neutral over the last few months as can be seen in the weekly chart above. The US dollar index is trading sideways inside a trading range. Best strategy is to wait for a breakout before opening mid- to long-term positions.
