On the H1 chart, the USDX is looking for an opportunity to break the resistance level of 99.25, but sellers are still very strong in that zone and that's why we can observe some strong pullbacks in lower time frames, such as 30M charts. Currently, the view is calling for a test at the 200 SMA on a short-term basis. A rebound could happen when the index finds bottom there. The MACD indicator is entering 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 moved towards the short-term support area we mentioned yesterday at 98.65. The price is bouncing towards the downward sloping resistance again. Medium- and long-term trends remain bullish.
Red line - short-term resistance Blue lines - bullish channel The US dollar index remains inside the bullish channel and above the Ichimoku cloud. The price bounced off the kijun-sen at 98.65 and is testing the resistance at 99-99.10. Breaking below 98.65 will push the index towards 98.30 and this is the most probable outcome in my opinion.
The weekly chart remains unchanged. The price has reached an important resistance area and a small pullback is justified at least. Bulls need to be very cautious in case this rejection becomes larger because there is also the scenario where we can see a test of the kijun-sen at 96.20. Taking profits is preferred for long positions or placing stops at 98.
The US dollar index spiked in the early European session, while ECB president Mario Draghi was giving a speech. However, shortly after it reversed confirming the fake breakout. Prices turned lower towards the support levels of the bullish channel, which remains intact in the medium-term.
Red line - resistance Blue lines - bullish channel The US dollar index has pulled back towards the lower channel boundary. Support is found at 98.40. If that level breaks, we should expect the price to move towards the short-term Ichimoku cloud support at 98. Resistance is seen at yesterday's highs. Breaking above it will imply the downward correction is over and new highs towards 100 should be expected.
The weekly chart shows an initial rejection at the previous highs. The level of 98 is critical support for bulls and any breakout below it should be treated as a big warning for bulls. Kijun-sen weekly support is found at 96. Taking profits at current levels or raising stops should be the preferred strategy.
The USDX is still doing pullbacks below the resistance level of 99.25, and now the 200 SMA came into focus in the H1 chart, where the index could find dynamic support to perform a rebound later. However, if that level gives up, we can expect another downside move towards the support zone of 98.03, which is below the 200 SMA. The MACD indicator is still 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 picked up some strength on Friday as the price bounced off the lower bullish channel boundaries and support levels. A trend remains bullish. The decline has a corrective overlapping structure, and I expect the bullish trend to resume soon.
Blue lines - bullish channel The US dollar index is trading above the Ichimoku cloud support and still inside the bullish channel. Support is found in the area of 98.60-98.40, while resistance is found at 99.25. In case of a breakout above 99.25, I would expect the level of 100 to be reached. New highs are also expected.
The weekly chart remains bullish despite the pullback performed last week. The price might be consolidating before the final thrust to new highs near 101-102. The trend remains long-term bullish and there is still no signs of reversal. Bulls should be cautious as we are just below important long-term resistance. Bulls should protect their longs with stops at 98.
On the H1 chart, the USDX keeps moving above the 200 SMA after a rebound performed during Friday's session. The resistance zone of 99.25 is still a very active zone for sellers, so the index could try a breakout above that level towards 99.80. Our outlook remains bullish as long as the index holds last session's lows. The MACD indicator is entering 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.
On the H1 chart, the USDX keeps moving above the 200 SMA after a rebound performed during Friday's session. The resistance zone of 99.25 is still a very active zone for sellers, so the index could try a breakout above that level towards 99.80. Our outlook remains bullish as long as the index holds last session's lows. The MACD indicator is entering 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 picked up some strength on Friday as the price bounced off the lower bullish channel boundaries and support levels. A trend remains bullish. The decline has a corrective overlapping structure, and I expect the bullish trend to resume soon.
Blue lines - bullish channel The US dollar index is trading above the Ichimoku cloud support and still inside the bullish channel. Support is found in the area of 98.60-98.40, while resistance is found at 99.25. In case of a breakout above 99.25, I would expect the level of 100 to be reached. New highs are also expected.
The weekly chart remains bullish despite the pullback performed last week. The price might be consolidating before the final thrust to new highs near 101-102. The trend remains long-term bullish and there is still no signs of reversal. Bulls should be cautious as we are just below important long-term resistance. Bulls should protect their longs with stops at 98.
USDX technical analysis for November 17, 2015
The US dollar index remains in a bullish trend inside the bullish short-term channel since 93.80. The trend remains bullish as long as the price is above 98. New highs are expected above 101-102 over the coming weeks.
Blue lines - bullish channel The US dollar index is above the Ichimoku cloud and inside the bullish channel as we can observe in the 4-hour chart above. Support is found at 99 and then at 98. Resistance is seen at 100.
Green area - resistance The US dollar index remains in the long-term bullish trend after breaking above the consolidation range we were in for the last few months. Now we see bulls testing important long-term resistance levels. Last week we saw a correction and this is over now as the bullish trend resumes.
Green area - resistance The US dollar index remains in the long-term bullish trend after breaking above the consolidation range we were in for the last few months. Now we see bulls testing important long-term resistance levels. Last week we saw a correction and this is over now as the bullish trend resumes.
The USDX continues moving higher above the support level of 99.25, so the next target could be placed at the level of 99.80. A breakout higher will open the doors to the next resistance level of 100.25, which could produce a huge pullback in progress. The 200 SMA is slightly bullish and we can expect a rally towards the level of 99.80 soon.
H1 chart's resistance levels: 99.80 / 100.25 H1 chart's support levels: 99.25 / 98.31 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 99.80, take profit is at 100.25, and stop loss is at 99.37.
