Technical Analysis USDX for April 27, 2016
The weak Durable Goods orders announced yesterday put some pressure on the Dollar index which initially broke below short-term support but as I said in a previous analysis, at the current levels the Dollar is oversold, and the downside is limited.
Black lines - sideways channel
The Dollar index is just above the Ichimoku cloud support on the 4-hour chart. The thin cloud implies that this support is fragile and only a break above the tenkan- and kijun-sen will confirm a reversal on the 4 hour chart. Resistance is at 94.50-94.60. Support is at 94.30 and then at 94.
Blue lines - trading range
The weekly chart has nothing new to provide to us. The price is trapped inside the cloud where we prefer to be neutral as this is a noise area with no clear trend. The price is near the lower cloud boundary support, and the stochastic is oversold. This is not the time to be bearish on the Dollar index.
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