USDX Technical Analysis for March 29, 2016
As expected, the Dollar index has started a pullback. Traders should be neutral for a short period of time as we should wait for the Fed Chairman Janet Yellen's speech that will certainly provide some volatility for the forex markets.
Red line - short-term resistance
Blue line - medium-term resistance
The Dollar index is in a bearish short-term trend. Price is making lower lows and lower highs. It is now testing the Kumo (cloud) resistance and the trend line resistance. Short-term support is at 95.80-95.60. If it is broken, we should expect price to move towards 95.30 which is an important short-term support. At that area I would look for initiating long positions with stops at 94.60. More conservative traders should wait for a breakout above the resistance trend line to initiate long positions.
In the daily chart we still can see price below the Kumo (cloud) resistance and between the kijun- and tenkan-sen indicators. Resistance is at 96.60 and support at 95.80. A medium-term reversal will occur if price breaks above 97.50. Overall, I prefer to be neutral at current levels.
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