The US dollar index held support yesterday and has staged an upward move towards recent highs. The trend is bullish and the weak pullback confirms how strong the bullish trend is. New highs before the year end are on the cards.
Blue horizontal line - support The US dollar index is trading above the Ichimoku cloud on the 4-hour chart and it has also broken above the kijun-sen. It means that we should expect new highs above 97.90 soon. Support is critical at 96.60. If it is broken, we should expect a push lower towards 95.50.
Red line - weekly resistance Green line - weekly support The weekly candle has once again been broken above the weekly resistance. We must be patient and see where this week's candle closes. The chances are in favor of the bullish scenario and the continuation of this upward move over the coming weeks to new highs. Weekly support is at 95.
The US dollar index is in a breakout mode and in its next upward move, which is very strong if we take into account the shallow pullback it made. Dollar sellers are too weak and cannot produce any significant retracements for this upward move.
The US dollar index is above the Ichimoku cloud and making higher highs and higher lows. The price is breaking higher and support is found at 97.25 and then at 96.60. Bulls are in control and if we look at the weekly chart below, we can see a very important breakout of the bullish flag.
Red line - resistance Green line - support The bullish flag in the weekly chart has finally been broken upwards. Pullbacks are to be bought as this pattern implies new highs over the coming months. The US dollar index is breaking out of a multi-month sideways move and this is an important bullish signal for the greenback that should not be taken lightly bey dollar bears.
USDX continues to ride the bullish bias towards the resistance level of 98.03, where a pullback is expected towards the support zone of 97.51 on a short-term basis. By the way, a breakout above that level first mentioned will push higher the Index until the 98.31 level, where a strong resistance zone is placed. 200 SMA is slightly bullish on H1 chart and MACD indicator remains on the positive territory.
H1 chart's resistance levels: 97.16 / 97.51 H1 chart's support levels: 96.71 / 96.40 Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USD Index breaks with a bullish candlestick; the resistance level is at 97.16, take profit is at 97.51, and stop loss is at 96.81.
On H1 chart, we should note the USDX is waiting for the next US NFP release, which will be published during today's American session. That's why we're still expecting a breakout higher and we could see the US Dollar at higher levels next week. Bear in mind that the Index is trapped inside an extreme zone, so pullbacks shouldn't be discarded at this stage. MACD indicator is entering the negative territory.
H1 chart's resistance levels: 97.16 / 97.51 H1 chart's support levels: 96.71 / 96.40 Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USD Index breaks with a bullish candlestick; the resistance level is at 98.03, take profit is at 98.31, and stop loss is at 97.76.
The Dollar index remains in a short-term bullish trend. We have finally seen a breakout above the long-term sideways move that implies we should expect new highs before the year end.
Red lines - bullish short-term channel Blue line - medium-term support The Dollar index is trading in an bullish trend. This is confirmed by price being above the Ichimoku cloud, kijun-sen being crossed by the tenkan-sen and by price making higher highs and higher lows. Short-term support is at 97.75. Next support is at 97.40 and then at 97.
Red line -weekly resistance Green line - weekly support The weekly chart shows us the breakout above the bullish flag formation. Price bounced off cloud support and is trending higher. I expect to see above 100-101 before year end unless we break below 93.
Frankly I am looking at the US dollar collapse in the coming year.With all the factors going around the world, the survival of USD is looking a bit skeptical. Following the big countries like China, where the stock market crash did affect the US market or The USD earlier was the reserve currency around the world post WWII. But the things have changed now that the china is on the verge of being a global trading destination and the strategy of China in Stock market crash of putting up onsite and offsite Yuan valuation has make it subtle and in the race to be a reserve currency. Taking this factors into account as said in here the US dollar collapse 2016 looks eminent to me.
The US dollar index remains in a bullish trend and might be forming a short-term bullish flag that could push the price towards the level of 100. The trend is clearly bullish in the medium term, but we are moving sideways in an intraday perspective.
Green line - support Blue lines - bullish channel Red lines - bullish flag pattern and projection The US dollar index is inside a bullish channel and above the Ichimoku cloud. In the short-term, it has formed a bullish flag. Breaking above 99.30 will signal the breakout of the flag pushing the index towards 100 and the upper channel boundaries.
Red line - resistance (broken) The weekly chart remains bullish after the breakout above the resistance trend line. The price is above the weekly cloud, but we are approaching our 2014 highs and this is important resistance. Bulls need to be cautious, but they are still in control of the long- and short-term trend.
The USDX is doing some consolidation moves below the resistance level of 99.25, because the index is trying to do another corrective move towards the support zone of 98.31 in coming days. However, we should note the level of 99.25 could get broken very soon, as bullish momentum remains very strong. The 200 SMA in the H1 chart is still bullish calling for another swing higher. The MACD indicator is at the negative territory.
H1 chart's resistance levels: 99.25 / 99.80 H1 chart's support levels: 98.31 / 98.03 Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the US dollar index breaks with a bullish candlestick; the resistance level is seen at 99.25, take profit is at 99.80, and stop loss is at 98.71.
The US dollar index intraday bullish flag did not play out as expected despite the breakout. The US dollar has weakened, but it remains inside the bullish channel.
Blue lines - bullish channel The US dollar index reversed yesterday after spiking higher to new short-term highs. The price broke below support at 99 moving lower towards the kijun-sen (yellow indicator) at 98.65. Channel support is found at 98.25 and cloud support is at 97.70.
Green area- resistance area The US dollar index made an important breakout during the past two weeks. Now it shows signs of a breakout towards new highs. The price bounced off the ichimoku cloud and both kijun- and tenkan-sen are below it trending higher. However, the price has reached the next important resistance area. Bulls need to be very cautious at the current levels and place stops to protect their positions.
The index id still moving sideways showing the bullish intentions in the short term. A breakout above that zone will open the doors to a test at the level of 99.80. However, a pullback at current levels will push the USDX lower towards the support level of 98.31, where a rebound is expected because of the 200 SMA current location. The MACD indicator is still seen at the negative territory.
H1 chart's resistance levels: 99.25 / 99.80 H1 chart's support levels: 98.31 / 98.03 Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the US dollar index breaks with a bullish candlestick; the resistance level is seen at 99.25, take profit is at 99.80, and stop loss is at 98.71.
