Technical Analysis of USDX for April 28, 2016
The dollar is pressured by sellers mainly in the USD/JPY pair and commodities pairs thus pushing the index to new lows. The trend remains bearish as price did not manage to break above 95.20. The rejection is pushing the index towards the next support level of 93.
Black lines - trading range
The Dollar index broke below the trading range and below the Ichimoku cloud support. The short-term resistance is at 94.90 and support, at 93. The stochastic oscillator remains at oversold levels and could give one more divergence before a bullish reversal.
Blue lines - trading range
The weekly candle is testing the lower cloud boundary support. This is an important support area. Bears should be very cautious and keep their stops tight as we could see a bounce as oversold stochastic is giving a warning. An important weekly resistance now is at 95.20 and trend reversal level.
The material has been provided by InstaForex Company - www.instaforex.com
