The Dollar index remains very strong above the 100 level reaching the previous highs near 100.50. There are several warning signs of a bearish divergence up here but as long as price is above 99.90 bulls are in control.
Blue lines – wedge pattern
Red lines – trading range boundaries
The Dollar index has broken above the trading range boundaries and is testing previous highs. Price is forming a wedge pattern that if broken we should expect a pull back at least towards 98.50. Resistance is at 100.50 and above that is uncharted area. The Oscillators are overbought for some time now, diverging and I believe it is dangerous opening new long Dollar positions now.
Blue line -resistance
Red lines – trading range
Green line – important support
On a weekly basis price is testing previous highs while oscillators are diverging at overbought levels. The long-term bullish trend is safe as long as price is above the green trend line support and the Ichimoku cloud at 96.50. A pull back towards 98 is justified from current levels if not a deeper bearish reversal.
The material has been provided by InstaForex Company – www.instaforex.com
The post Technical analysis of USDX for November 16, 2016 appeared first on forex-analytics.press.