The Dollar index was down slightly on Monday and it has not moved much so far during the London session, as traders are a bit indecisive about what to do with the greenback at the moment. The index was trading at around 96.40, which is very slightly above the important bullish trend line.
The first major support is therefore at 96.25 and if taken out, the current bullish wave could end quickly, with the next target dropping again toward the 95.50 zone. Slightly below this, at 96.35, the 100-day moving average can be found, which could provide another support for the greenback. However, if the price drops below these two levels, the trend could most likely switch to bearish again.
On the upside, the very important resistance stands at previous highs of 97.00 and if the price moves back above this level, we could see a bullish breakthrough toward the current cycle tops at 97.60.
The US Dollar failed to strengthen significantly after the stellar US labour market report and investors are also not buying the latest hawkish mood by the Fed as the market is now considering some rate cuts for 2019, which might not be positive for the US Dollar.
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