Technical Analysis of USDX for April 7, 2016
The Dollar index has broken support yesterday and is moving lower towards our 93 target area. Dollar bears need to be very cautious as the price is showing bullish divergence signals and if we reverse upwards above 95.10, the trend will change to bullish.
Black line - resistance
Blue area- support
The Dollar index continues to trade below the Kumo (cloud) on the 4-hour chart and below the trend line resistance. Both the stochastic and the RSI oscillators show bullish divergence signs. A reversal could be seen today so dollar bears should be very cautious and watch their stops.
Blue lines - trading range
The weekly chart continues to show sideways movement for the last year for the index. This consolidation has an upper boundary at 100 and a lower boundary at 93. We are closing on the lower boundary support with oscillators oversold. This does not mean by itself that a top is in, but caution is advised for dollar bears.
The material has been provided by InstaForex Company - www.instaforex.com