The Dollar index continues to trade sideways between the important levels of 96.50 and 94.60. The sideways choppy action does not favor short-term traders; they'd better be patient.
Red line - resistance
Green lines - trading range
The Dollar index continues to trade around the 4 Ichimoku cloud inside a tight trading range as depicted by the 2 parallel green lines. Upper resistance is at 95.80 while short-term support lies at 95.25. However, the most important support and resistance levels are defined by the triangle formation which shown by the blue and red trend lines.
The weekly candle remains above the important green trend line support and has moved above the tenkan-sen indicator. A weekly close above the tenkan-sen may signal a move towards the Ichimoku cloud and the 96.50 level. The price being below the weekly cloud is not a good sign for bulls as it increases the chances of eventually breaking below the green trend line support at 94.60. Only a break above 96.50 will make me turn bullish on the Dollar index.
