The Dollar index remains trapped inside the trading range and triangle formation that I mentioned in previous posts. The best strategy is to wait and be patient for a breakout. I favor the downward breakdown towards 92.
Black line - horizontal resistance
Blue line - important support trend line
Red line - trend line resistance
The Dollar index continues to trade around the 4 hour Ichimoku cloud. Trend is neutral as price is trapped inside this trading range of the triangle formation. Important support is at 94.60 and resistance at 96.50. Traders should better wait for a trend line to be tested or broken before taking any exposure.
As long as price is above the green trend line bulls are still alive hoping for an upside breakout. However price is below the weekly cloud and below the tenkan-sen (Red line indicator). Bears need to break the green trend line resistance for more selling to be seen. If this breakdown comes true, then I expect 92 to be tested and broken. On the other hand only a break above the weekly cloud will be a bullish signal for the index.
