Technical Analysis of USDX for April 20, 2016
The Dollar index made the deep correction I've been expecting and we should now see a bullish reversal. For this to be confirmed, we first need a break above 94.80 and then above 95.20.
Black line - trend line resistance (broken)
The price is below the cloud. The stochastic is oversold and turning upwards. The price has broken above the black downward sloping trend line and has re-tested it. The Dollar index has retraced 78.6% of the latest rise and should not fall further if it is about to reverse upwards. Critical support is at 93.60. If broken, we could see a test of 93.
Black line - daily resistance trend line
The Dollar index continues to make higher highs and higher lows. The stochastic has been diverging for several days. Is this bounce in the stochastic a sign of a trend reversal? Bulls will need to break above 94.80 on a daily close in order to confirm a bullish sign. This is not the area to be short in the Dollar but the area to be looking for a long opportunity and bullish signal.
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