Technical Analysis of USDX for April 4, 2016
The Dollar index has been moving sideways for the last two sessions and has not produced any change on the bearish trend. Our weekly target of 93 is still open as long as price is below 96.40.
Red line - resistance
Blue area - support zone
Price remains below the Kumo and the resistance trend line on the 4 hour chart. Trend remains bearish but price is stuck around the support zone of 94.50-94.60. A break below 94.40 will lead to an increase in the selling pressures and a push of price towards 93.
Blue lines - sideways channel
The weekly chart remains bearish as price is inside the Kumo in a technical downtrend. Price is heading towards the lower Kumo boundary where the lower channel boundary is found. So the 93 area is of great importance for the medium-term trend. Resistance is important at 96. So a break above it on a weekly closing level will be a bullish sign. Stochastic oscillator is oversold on the week so bears should be very cautious.
The material has been provided by InstaForex Company - www.instaforex.com