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The US Dollar index has bounced as we expected from the 61.8% retracement of the rise from 93.10 to 97.80. But it has found strong resistance at the Ichimoku cloud in the area of 96-97. The upward bounce has reached the 61.8% retracement of the decline from a high of 97.80 to a low of 94.64. A bearish reversal looks very possible.
The Dollar index bounced as expected and is getting rejected at the cloud resistance and at the 61.8% Fibonacci retracement. This is a bearish sign. This has bigger bearish implications as this reversal could be the start of a bigger decline below 93.10. If the recent lows at 94.64 are broken we should expect a move even towards the 90 price area.In case this scenario comes true, a break below 93.10 will signal a move towards the 50% retracement in the weekly chart as shown above. The price should be pushed towards the cloud support and 50% retracement at 90. Weekly support is at 94.10 and resistance is seen at 96.65.InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.