Technical Analysis of USDX for April 8, 2016
The Dollar index is showing signs of a possible reversal that is near. Several bullish divergence signals are given despite the new low. The trend remains bearish but dollar bears should be very cautious as a reversal could occur any time now.
Red line - resistance trend line
Black lines - bullish divergence signs
The Dollar index is still trading below the Kumo (cloud) on the 4-hour chart. The price is making lower lows and lower highs but the oscillators on the 4-hour chart are giving bullish divergence signals. Resistance is at 95. Support is at 94.20.
Blue lines - sideways channel
Red line - trend line resistance
The weekly candle is shaping to be a doji candle. This is a typical reversal candle but we have to wait for the weekly candle to close before reaching any conclusions. The short-term trend remains bearish. The long-term trend is neutral as the price continues to trade for at least a year inside the trading range. The weekly stochastic is also giving some bullish divergence signals and that is why dollar bears should be very cautious.
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