The Dollar recovers

The Dollar index had fallen below the 93.00 level, but it couldn’t reach the 92.00 level. When the index was below the 93.00 level it made some interesting moves as shown on the daily chart. The long lower shadows on the daily candles below the 93.00 level indicate that the buyers came into the market when they saw it falling and prevented it from reaching the 92.00 level. Actually, below the 93.00 level we can see the formation of a double bottom. The Dollar has been benefited during the last few sessions due to the tax reform developments in the United States. At the moment, the Dollar index reaches its 55 day EMA around the 93.54 level. The 55 day EMA may act as resistance, but the index could try to go and reach the 94.00 level However, a better resistance could be found at the 95.00 level where we can find the 200 day EMA (blue line).