Technical analysis of USDX for August 30, 2016

The Dollar index remains in an uptrend after the breakout above 95.20. Short-term charts show some divergence signals that provide a warning for Dollar bulls. However, I believe that any pullback will be a buying opportunity and traders should not chase the market now but wait.

analytics57c535358cfb2.jpg

Red line – resistance trend line (broken)

Blue lines – trend line support

Price has broken above the cloud resistance last week and has provided us with a bullish reversal signal. Support is at 95-95.15 and resistance at 96. I believe we could see a rejection at the 96 level and a pullback which will be a nice tradeable buying opportunity with 94.50 as stop.

analytics57c53604498d7.jpg

Green line – trend line support

Weekly support has provided the Dollar index with a strong bounce. Next important weekly resistance is at 95.85 and next at 96.50. At either level the chance of a rejection is high, so Dollar bulls should be very cautious. The 94-94.50 area is important medium-term support and should hold. Otherwise bulls will be in danger of losing even the 92 level.

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

The post Technical analysis of USDX for August 30, 2016 appeared first on forex-analytics.press.