Technical Analysis of USDX for April 13, 2016
The Dollar index is showing signs of the trend reversal as price continues trading inside the downward sloping wedge. I prefer to be neutral or slightly bullish at current levels as the Dollar index is at the oversold levels.
Red line -resistance
Black lines - bullish divergence signs
The Dollar index remains below the red trend line resistance and the Kumo on the 4 hour chart. The trend remains bearish but we see some first reversal signs as the bullish divergence signals by the RSI and the stochastic oscillator are now showing their effect. Important short-term resistance is at 94.70 and then at 95.20. Support is at 93.70.
Nothing new on a weekly basis apart from the bullish reversal candle; it is shaping up. Price has reached almost the lower boundary of the Kumo (cloud) and with stochastic oscillator oversold we have a good chance of a big bounce from the current levels. It is not the time to be short on the Dollar. Downward potential is very limited for now. Upside potential is huge.
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