The USDX is currently dealing with strong resistance placed around the level of 96.57 and we can expect a rally towards the next high of 97.57, but the index seems to get enough bearish momentun in order to make pullbacks in coming days. However, we should recommend to be caution when trading on both sides, at this stage.
In the H1 chart, the USDX did a pullback towards the price zone of 97.10. Now, it's looking to test the support level of 96.38 again after performing a rebound above the 200 SMA. We should be aware of the current intraday bearish structure as the USDX could aim to test the moving average mentioned above again.
Daily chart's resistance levels: 97.57 / 98.29 Daily chart's support levels: 96.57 / 95.74 H1 chart's resistance levels: 96.72 / 96.86 H1 chart's support levels: 96.38 / 95.20 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 96.72, take profit is at 96.86, and stop loss is at 96.56.
The US Dollar Index bounced as expected from short-term support yesterday and hit a new short-term higher high confirming the bullish trend. The bullish scenario is gaining more points as the price is heading towards higher highs and the weekly chart is approaching important weekly resistance at 98. Bulls should be very cautious.
Support is found at 97-97.20. and then at 96.50 by the Ichimoku cloud. Resistance is at 98. The trend is bullish and as long as the price is above 96, the bullish scenario will be my preferred one.
Blue line - medium-term trend line resistance The medium-term trend line resistance is broken and the weekly candle is making a higher high than the previous one. This is a bullish sign for what we should expect over the coming weeks. The weekly chart is clearly above the kijun- and tenkan-sen indicators confirming bullish trend. New highs above 100 should be expected if this trend continues.
The daily chart structure remains bullish as the Index is approaching the resistance zone of 97.57, the level which is the key one for the current trend development. If USDX achieves that high, it would be expected to test the resistance level of 98.29. Also, bear in mind that the 200 SMA is still pointing to the upside.
The USDX is currently breaking the resistance (now support) level of 97.21, looking for the next target around 97.53. There, we should expect another breakout after a higher high pattern formation in the H1 chart. in case of success, it could reach the next resistance around the 97.72 level. The MACD is at positive territory.
Daily chart's resistance levels: 97.57 / 98.29 Daily chart's support levels: 96.57 / 95.74 H1 chart's resistance levels: 97.53 / 97.72 H1 chart's support levels: 97.21 / 96.86 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 97.53, take profit is at 97.72, and stop loss is at 97.34.
The US Dollar Index remains in a bullish trend although today we see some short-term reversal signals. We might see a short-term pullback, but the overall trend remains bullish with new highs as targets.
Red line - possible price path The US Dollar Index is moving towards higher highs and higher lows. The price is above the Ichimoku cloud. There are some signs of possible reversal and a pullback towards the previous resistance area around 97.30 could be justified as a back-test. Bulls remain in control of the trend.
Blue line - resistance The weekly chart remains bullish as the price remains above the kijun- and tenkan-sen and has briefly broken above the blue horizontal trend-line resistance. The weekly chart remains bullish in the longer-term. As long as the price is above 95.50-95 area, the trend will favor bulls with targets above 100. The kijun- and tenkan-sen indicators are now with a positive slope again and this is a bullish sign as well.
The USDX breached the descending trendline drawn from highs reached at 1985 to highs reached 2002. The index spent considerable time consolidating above that levels, aiming for highs reached 2002. The index breached the previous swing high of 97.78, the nearest resistance is seen at 98.25 and 98.70.
The US Dollar Index remained strong yesterday despite weakness in the early trading hours. The price is now breaking above the 98 resistance level increasing chances of success for the bullish scenario. The US Dollar Index could make a short-term pullback but othe verall trend remains bullish.
Black lines - upward sloping channel The US Dollar Index is inside an upward sloping channel. Tenkan-sen (red line) support is held for now. If broken we could see a push towards the lower channel boundary and most probably towards the kijun-sen indicator (yellow line).
Blue line - horizontal resistance The weekly chart remains bullish and now that the recent high at 98 is broken, the bullish scenario of new highs gains even more points. Tenkan- and kijun-sen are positively sloped, price is making higher highs and higher lows. I remain bullish.
Daily analysis of USDX for July 21, 201
On the daily chart, The USDX is reaching new monthly highs above the key support level of 97.57 and it is expected to test the level of 99.15, when a breakout takes place above 98.29. However, we could expect a pullback when the Index achieves that territory, because it is overbought in lower time frames.
The USDX is trading sideways below the resistance level of 98.22, which is a very important zone in the current bullish intraday structure. If USDX breaks that level, it would be expected to test the next high around 99.02. The 200 SMA is slightly bullish, and the MACD indicator remains at positive territory on the H1 chart.
Daily chart's resistance levels: 98.29 / 99.15 Daily chart's support levels: 97.57 / 96.57 H1 chart's resistance levels: 98.22 / 99.02 H1 chart's support levels: 97.72 / 97.53 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 97.72, take profit is at 98.22, and stop loss is at 97.41.
The USDX did a pullback. Now, it is consolidating back below the resistance level of 97.47 on the daily chart and that's why the nearest targets are located in the downside, around the support level of 96.57. A breakout there will open doors to the important support at 95.63. The MACD indicator is still at positive territory.
On the H1 chart, the USDX is forming a lower low pattern above the 200 SMA now and we should be aware of support zone around the level of 97.12, because a breakout could happen there. On the other hand, we can expect a rebound there also, if the Index finds strong dynamic support on that moving average mentioned above.
Daily chart's resistance levels: 97.57 / 98.29 Daily chart's support levels: 96.57 / 95.63 H1 chart's resistance levels: 97.53 / 97.77 H1 chart's support levels: 97.12 / 96.73 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 97.53, take profit is at 97.72, and stop loss is at 97.31.
The US dollar index has broken the short-term upward sloping channel and is showing signs of a short-term reversal. As I mentioned in my last analysis, it was highly probable to see a short-term pullback in the USDX towards 97. However, the longer-term trend remains bullish.
Black lines - bullish channel The US dollar index has made a pullback yesterday and remains weak this morning. The price is expected to test the Ichimoku cloud, but at the same time, we see that it remains inside the bullish channel. Important support is found at 97-96.80 area and I believe it should hold and produce a bounce if tested.
Blue line - horizontal resistance The weekly chart remains bullish despite the red candle and the pullback in the price. I was expecting a pullback to test support by the kijun-sen (yellow line). A weekly close above 98 will be the sign that the uptrend resumes. Bulls should be very cautious if the price breaks below 96.80.
The US Dollar index is pulling back in a corrective pattern as we expected two days ago. Despite yesterday's bounce towards 97,80, we saw a rejection at the 61.8% retracement of the latest decline. Now, we see new lows below 97.10 towards cloud support.
Black lines - bullish channel The US Dollar Index remains inside the medium-term bullish channel and is now testing Ichimoku cloud support as shown in my 4-hour chart. Support is found at 96.80 while resistance is at 97.60 by the kijun-sen (yellow indicator) and at 97.80 the recent high.
In overall, the US Dollar Index is back testing the kijun-sen (yellow indicator) in the weekly chart. If the bullish scenario comes true, we should see a strong bounce from this support area. If the weekly chart closes below 95.80, the bullish scenario will be in danger. The rise so far from 93.10 is in 3 waves and this implies a correction. Therefore we will need some upside resumption in order to enable bulls to remain in control. Otherwise, the bearish scenario of a deeper correction towards 90 restarts will take place.
