Dollar index failed to hold a daily close above the 95.15 level yesterday
And once again that resistance "air pocket" is proving to be a tough spot for buyers to hold any firm or strong conviction to stay within it in order to test the highs at 95.53 again. The good thing is that there isn't any imminent signs of a breakdown in the rally over the past two days just yet.
I'm not a fan of price action when they are sitting at current levels (caught in the middle of support and resistance levels), since they don't give areas for you to lean on and price moves can be 50-50 in my view.
But it is what it is today, so let's look at the key levels that current price is working around.
For dollar bulls, it's all about getting back above the 95.15 handle and sustaining a break higher. A daily close above it will lend more confidence to test the 95.53 handle in the coming days.
As for dollar bears (sellers), a breach below support at 95.00 would be the first step but the key would be to take out the 100-hour MA (red line) @ 94.84 and subsequently the 200-hour MA (blue line) @ 94.56. There is much work for sellers to do at this point, which is why near-term bias still favours buyers as long as price stays above the 100-hour MA.
As mentioned above, I really dislike picking sides when price is sitting in no man's land basically. So, if you're looking for a trade entry, make sure you define and limit your risks well in any case.
