The US dollar index remains supported despite finding strong resistance at 94.70. The price is consolidating for the next upward move. The short-term trend is bullish. On a weekly basis, we have a very bullish hammer reversal candle that is expected to push price towards 98 at least.
The dollar index is right inside the 4 hour Kumo (cloud) resistance area. A break above it will confirm a short-term bullish trend and strengthen it. Support is at 94.35 and at 94.05. Resistance is at 94.70 and at 94.90. I believe the uptrend will resume shortly and I remain bullish as long as price is above 93.35.
The weekly chart gave us a bullish weekly hammer. This is a bullish reversal sign. However, the price is stuck below the weekly Kumo (cloud) resistance so bulls will need soon to re-enter the cloud and break above the 95.90 weekly resistance and previous short-term high in order to confirm the bullish trend on a medium-term basis.
