Technical analysis of USDX for August 26, 2016

Everyone is waiting for FED Chair Janet Yellen to speak today at Jackson Hole. The FED’s strategy regarding interest rates will be the focus on any possible hint regarding a rate increase in September. The Dollar is expected to stay calm and trade sideways until the speech later today.

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Red line – resistance

Blue line – support

Technically we have the same conclusion. The market is indecisive and is waiting for more information about the Fed’s strategy and economic outlook in order to clear up a trend. Therefore, we focus on two price levels. 94.20 and 95 are important price levels. If broken, they will produce sell or buy signals respectively.

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Green line – trend line support

On a weekly basis price is holding above trend line support but still below the cloud and both tenkan- and kijun-sen indicators. A weekly close below 94.20 will be a very bearish signal that could bring the index even below 92 over the coming weeks.

The material has been provided by InstaForex Company – www.instaforex.com

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