USDX Technical Analysis for March 22, 2016
The Dollar index remains in a bearish trend since early Decemeber of 2015. Price is making lower lows and lower highs. The short-term trend remains bearish while the longer-term trend is still neutral as price is trapped inside a trading range.
Red lines - bearish channel
Blue line - resistance trend line
The short-term resistance is at 95.60-95.80. Support is at 94.50. The most probable outcome for the bearish trend is to continue lower as short-term stochastic oscillator is overbought. So at least another move lower towards 94 is to be expected. Rallies are selling opportunities.
Blue lines - sideways channel
On a weekly basis, the trend remains neutral with a slight bearish indication, as price has broken inside the weekly Kumo (cloud). Price is trapped inside the sideways channel as shown on the weekly chart above. There is still no divergence in the oscillators. More dollar weakness should be expected.
The material has been provided by InstaForex Company - www.instaforex.com
