Technical Analysis of USDX for April 11, 2016
The Dollar index remains in a bearish trend but this trend is soon to end and reverse upwards as there are many divergence signs. Dollar bears should be very cautious as the 94 price level is heavily defended by dollar bulls.
Red line - resistance
Black lines - divergence signs
The Dollar index continues to make lower lows and lower highs. The price remains below the Kumo (cloud) resistance. The RSI and stochastic oscillator, though, do not make new lower lows despite the lower lows by the Dollar index. This is a warning for dollar bears. I prefer to be neutral or long in the Dollar index at the current levels. Important resistance for the short-term is at 94.70.
The daily chart remains in a bearish trend but with oscillators oversold, we should soon see an upward reversal. The downside is limited to 93 while a break above 95.25 will confirm the bullish reversal with the minimum upside target of 96.20.
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