The US Dollar Index remains strong as the price is trying to break above the medium-term resistance at 96.70-96.80. The rice is still in a short-term bullish trend with higher highs and higher lows. Important support is at 95 now . So, as long as the price holds above that level, bulls will be in control.
Blue line - trend line support The US Dollar Index is above the short-term ichimoku cloud and above the trend-line support. The trend is bullish. The short-term support is at 95.80. The short-term resistance is seen at 97.
Blue line - trend line resistance The weekly chart is showing how this week's candle is trying to make a breakout above the trend-line resistance. If bulls manage to break above this resistance, the upside potential for the index could be new highs above 101. Critical long-term support is found at 93.50. If it gets broken, we should expect a correction to unfold towards 90.
The US Dollar Index has broken above the medium-term trendline resistance showing that bulls are in control. The price is pulling back to backtest the breakout area. This backtesting is important as it will show us if the breakout was fake or not. The short-term trend remains bullish.
Blue lines - trend lines The US Dollar Index is above the Ichimoku cloud and has broken above the downward slopping trendline resistance. This breakout area is now being backtested. Support is at 96-95.70. Resistance is at 97.20-97.70.
Blue line - medium-term trendline resistance The US Dollar Index is making a weekly chart above the trendline resistance. The price is also above the tenkan- and kijun-sen indicators which support the bullish trend. The price has retraced only near 38% and is bouncing strongly. If this week and the next one remain above 96, a new upward move will start with new highs as a target.
The US Dollar Index pulled back yesterday to test the breakout area after it had broken out above the medium-term resistance. This pullback was considered a buying opportunity as the trend remains bullish in the short term and bulls are in control of this trend.
Blue lines - important support trend lines The US Dollar Index broke above the downward sloping trendline and back tested it and bounced. The price also holds above the Ichimoku cloud and above the upward sloping blue trendline. The Index is headins towards higher highs and higher lows. A trend is bullish. Support is seen at 95.85. In case it gets broken, we should expect a push towards 95-94.50.
Blue line - medium-term trend line resistance The US Dollar Index weekly chart is trading above the medium-term trend-line resistance. The price is also above the kijun- and tenkan-sen indicators. The medium-term trend is unclear yet. Short- and long-term trends remain bullish. Important weekly resistance is seen at 97.80. A weekly break above this resistance level will increase chances for a new upward move towards new highs.
The USDX is currently facing very strong resistance in the daily time frame, because the zone around the level of 96.57 remains very solid acting as supply territory for the Index. That is why we want to see another pullback again until the support level of 95.74. The MACD indicator is reaching an overbought territory.
In the H1 chart, the USDX made a very interesting price action at the yesterday session/ The Index pulled back from the highs around the level of 97.20 and now it is looking for the dynamic support offered by the 200 SMA. If the USDX does a rebound over there, it would be expected to test the resistance level of 96.38 again.
Daily chart's resistance levels: 96.57 / 97.57 Daily chart's support levels: 95.74 / 94.66 H1 chart's resistance levels: 96.38 / 96.65 H1 chart's support levels: 96.13 / 95.89 Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the US Dollar Index breaks out with a bullish candlestick; the resistance level is at 96.38, take profit is at 96.65, and stop loss is at 96.13.
The US Dollar Index was rejected at its recent highs and pulled back towards the cloud support once again. The short-term trend remains bullish as long as the price is above 95.80. We are at a critical junction as support is very close and we should either see a strong downward reversal or a continuation of the uptrend.
Blue line - trend line support The US Dollar Index is testing the upward sloping trend-line support and is above the Ichimoku cloud. Short-term support is seen at 95.80 and resistance is seen at 96.75. A break above resistance will open the way to new short-term highs around 98. A break of the support will put pressures on the index leading to the test of support at 94.50.
Blue line - trend line resistance The US Dollar Index is back testing the breakout level of 95.80 in the weekly chart above and is also testing the Ichimoku indicators of kijun- and tenkan-sen. Support in the area of 95.80-95.70 is very important. A weekly close below these levels is not a good sign for dollar bulls.
The USDX keeps falling below the resistance level of 96.57 in the daily chart, because that zone is a very strong supply zone. Currently, we can see bulls' reaction after testing of the support level of 95.74. However, a breakout above the resistance level of 96.57 will open the doors to the level of 97.57 in the mid term.
On the H1 chart, the short-term picture is clearly bearish, because the USDX is trading below the 200 SMA and also it's looking for an opportunity to break the support level of 95.89 in order to test the zone around 95.64. At this stage, we are still expecting a breakout of the level at 96.13, in order to achieve the next high around 96.38. The MACD indicator remains at positive territory.
Daily chart's resistance levels: 96.57 / 97.57 Daily chart's support levels: 95.74 / 94.66 H1 chart's resistance levels: 96.38 / 96.65 H1 chart's support levels: 96.13 / 95.89 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 96.13, take profit is at 96.38 and stop loss is at 95.87.
The US Dollar Index broke below the support on Friday as hopes for an agreement in the European Leaders Summit pushed EUR/USD, the main component of the index, above 1.12. Hopes for an agreement was the main reason of weakness in the US dollar. However, we saw a sell the news behavior among market participants once the agreement was finalized.
Blue line- trend line support The US Dollar Index tested the Ichimoku cloud support once it broke below the upward sloping trendline on Friday. The cloud support was held and today we see a backtest of the broken trendline, which is resistance now. Support is found at Friday's low of 95.45. A break below this level will increase chances of a deeper correction towards 92.
Blue line- longer-term trend line resistance The US Dollar Index managed to move above the long-term downward sloping blue trendline resistance last week, raising the chances of a new bullish move, however the week closed below the trendline. Despite the announcement of the agreement reaced in Europe, many analysts would expect the UD dollar to continue weakening. It seems that a sell-the-news behavior prevaile and most traders prefer to move to longs. The index has moved back above the tren-line resistance. The trend is bullish as long as the price is above 95.50.
On the daily chart, The USDX continues to trade in favor of the long side, because the Index is trading above the support level of 96.57, looking now for the resistance zone around 97.57. However, be cautious with the current supply territory, which is located there, as the USDX could perform a strong pullback when at 97.57.
The Index is now forming a higher high pattern above the support level of 96.72, looking for an opportunity to break out above the resistance level of 96.86. In case of success, it would be expected to test the level 97.08. The current bullish momentum which is taking place above the 200 SMA in the H1 chart. The MACD indicator is overbought.
Daily chart's resistance levels: 96.57 / 97.57 Daily chart's support levels: 95.74 / 94.66 H1 chart's resistance levels: 96.38 / 96.65 H1 chart's support levels: 96.13 / 95.89 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 at 96.86, take profit is at 97.08, and stop loss is at 96.64.
The US Dollar Index is heading towards higher highs and higher lows since mid-June. All pullbacks reached the 61.8% retracement levels and buyers stepped in and pushed the index higher. The rend remains bullish and the reversal from 93.50 looks like is a new upward move that will bring the index to new highs. This is the most probable scenario as long as we hold above 95.40.
The US Dollar Index is above the cloud support. The index is moving higher in an impulsive pattern and each pullback reaches the 61.8% Fibonacci retracement and reverses higher. This pattern promises much more upside specially if we break above the recent highs at 97.20.
Blue line - medium-term trend line resistance The weekly chart has clearly broken above the medium-term trendline after testing it at 95.40. The most probable scenario now is the resumption of the up trend as long as we hold above 95.40. Otherwise, if we see a downward reversal, we should expect 93.50 to be challenged and, why not, see a deep decline towards 90.50.
The US Dollar Index held above support despite the selling pressures arisen yesterday after weak retail sales data and comments of BOE's Carney. The trend remains bullish as long as the price is above 95.40.
The US Dollar Index made a pullback yesterday, but held above the tenkan-sen support in the 4-hour chart and pushed back up above the Ichimoku cloud. Short-term support is found at 96.20 while short-term resistance at 97.25.
Blue line - medium-term trend line resistance The US Dollar Index has broken above the medium-term trend-line resistance and it seems that the weekly close will take place be above it. This is a bullish sign but US dollar bulls will also need to see a higher weekly candle stick relative to last week's level of 97.25. In case my bullish expectations after this trend-line breakout are not confirmed, the first bearish signal will come with a break below 95.40. This will increase chances ofa deeper correction towards the 38% retracement.
