The US dollar index remains in a short-term uptrend, but it has given some worrying signs of a possible reversal as it cannot push above the 98.20-98.30 resistance. The price got rejected once again at that resistance area but for now the pullback is shallow and has not broken short-term support at 97.15.
Red line - resistance Green line - support The price is above the Ichimoku cloud and tests the Kijun-sen (yellow indicator) support. Short-term support is a recent low at 97.65 so a break below that level could push the price towards the cloud support at 97.15. Critical support for the medium-term bullish trend is at the green trendline support at 96.70.
Red line - resistance Green line - support The US dollar index still trades inside the triangle pattern. With NFP today announced in the US, we should expect some increase in volatility to help the price break above or get rejected and push towards the green trendline support. Weekly support is also found at 96.70; and the next one, at 95.90. The best strategy is to wait until the Non-Farm Payrolls announcement to open a position.
The USDX has no changes in the daily time frame, because the index is looking to test the support level of 97.57. If a breakout happens there, the USDX could fall until the level of 96.57. However, we are still expecting a rebound towards the resistance zone of 98.29.
On the H1 chart, the USDX found strong resistance at the level of 98.09 and now it is pulling back to the support level of 97.65, which is very close to the current location of the 200 SMA. However, a rebound at the current stage could happen and eventually the USDX could break the level of 98.09 and perform a rally towards the zone of 98.40.
Daily chart's resistance levels: 98.29 / 99.16 Daily chart's support levels: 97.57 / 96.57 H1 chart's resistance levels: 98.09 / 98.40 H1 chart's support levels: 97.65 / 97.12 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 98.09, take profit is at 98.40, and stop loss is at 97.77.
The Dollar index had a very volatile day on Friday. Just before and after the NFP announcement volatility rose as we initially saw a deep decline towards short-term support at 97.60 and then a move to new short-term highs above 98.20. However the signals at the end of the day did not favor Dollar bulls.
Red line - resistance Green line - support The Dollar index continues to trade between the two trend lines as shown on the chart above. Although price remains above the Ichimoku cloud (which is a bullish indication), the fake breakout we saw on Friday was not a good sign for Dollar bulls. This fake breakout might be the start of a bigger trend reversal to the downside. This will be confirmed when and if we break the green upward sloping trend line and fall below the Ichimoku cloud.
Re line - weekly trend line resistance Green line - weekly trend line support The weekly chart in the Dollar index shows how price got rejected at the upper triangle boundary. However price remains above the weekly kijun-sen (yellow indicator) Bulls are still in control of the short-term trend as long as price is above 96.80. However they are also trapped inside the triangle pattern and are in danger of making another move down towards the lower triangle boundary at 95-94.50. Overall the longer-term trend is neutral as long as price is inside the triangle. Short-term traders could take advantage of the triangle boundaries for short-term trading.
On the daily chart, the USD index made a pullback. Now it's testing the support level of 97.57. On the daily chart, we can see the bullish bias could be facing a key zone which will make the USDX retest new lows on a weekly basis because the resistance level of 98.29 remains very strong against the current bullish bias the index is following.
USDX is currently trading above the 200 SMA on H1 chart, but continues to be supported by that moving average, which is also providing this Index with dynamic support. That's why we should expect a rebound at current levels. Eventually, USDX could test again the resistance level of 98.09 on a short-term basis.
Daily chart's resistance levels: 98.29 / 99.16 Daily chart's support levels: 97.57 / 96.57 H1 chart's resistance levels: 98.09 / 98.40 H1 chart's support levels: 97.65 / 97.12 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 98.09, take profit is at 98.40, and stop loss is at 97.77.
The Dollar index as expected has made a bigger pullback towards the 97 support area after being rejected last Friday at 98.20. Now it is important to see how the market will react because if we break below 97, a bigger correction might be at play. On the other hand, bullish positions should be favored at current levels targeting new highs.
Red line - resistance Green line - support The Dollar index has reached the green trend line support and the Ichimoku cloud support as shown in the 4-hour chart above. Support was held and price bounces supporting the bullish scenario. Important resistance is at 98.20, so another break above that level will be more reliable now after this pullback,
Red line - weekly downward sloping trend line resistance Green line - weekly upward sloping trend line support The Dollar index was initially rejected at the weekly trend line resistance but has held above the weekly kijun-sen (yellow indicator). A new higher high above last week's high will be a bullish breakout signal that could push the index to 100 again and why not to new highs. So bulls should be careful in case we see new lower lows and bears should also look to protect themselves if we break above the red trend line.
The Dollar index rejection at 98.20 has pushed price towards 97 support and broken it. Next target was 96 and this level has been reached. Short-term trend is bearish and I believe there more chances of a deeper correction towards 95 than a bullish reversal now.
Red line - resistance Green line - support trend line The Dollar index was rejected at the resistance area and has broken below the trend line support. The trend is bearish as price is below the Ichimoku cloud and below the upward sloping trend line. We could see a bounce as a back test of the broken trend line. Resistance is found at 96.60 and at 97.10. Support is at 95.40.
Red line - weekly resistance Green line - weekly support I believe the Dollar index is heading towards the weekly green trend line support near 95-95.50 area. Intermediate support is found by the tenkan- and kijun-sen in the 95.90-96.40 area. That is why we see a bounce from this area. The longer-term trend is still neutral as price remains inside the triangle.
Bears took the control of the situation with the USDX, which is now trading below the 96.57 barrier zone. It's looking to test the next support located around the 95.50 level in the midterm outlook. We should consider the current moves as corrective in favor of the overall bullish trend, but we need to pay atenttion to the strong resistance formed at the 97.57 level.
The short-term picture on H1 chart is very bearish, because the Index managed to consolidate below the 200 SMA and the resistance zone of 96.37, with a lower low-pattern formation. The next support is located at the 95.94 level. In case a breakout happens over there, the USDX will fall until the 95.60 zone.
Daily chart's resistance levels: 96.57 / 97.57 Daily chart's support levels: 95.50 / 94.70 H1 chart's resistance levels: 96.37 / 96.88 H1 chart's support levels: 95.94 / 95.60 Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USD Index breaks with a bearish candlestick; the support level is at 95.94, take profit is at 95.60, and stop loss is at 96.28.
The Dollar index remains in a bearish short-term trend. The index bounced higher yesterday towards short-term resistance of 96.90 but got rejected. I believe that the downward pressures are not over and I believe it is more probable to see price reach 95.
The Dollar index as shown on the 4-hour chart above is making lower lows and lower highs. Price is below the Ichimoku cloud. Price has broken the 38% retracement and I believe is heading towards the 61.8% retracement.
Green line - support Red line - resistance The weekly chart continues to show that a trend is neutral as price is moving inside the multi-month triangle pattern. The Dollar index is testing the kijun- and tenkan-sen support indicators. If broken, we should expect more selling pressures to push price towards the lower triangle boundary. A break above the upper triangle boundary will be a bullish signal with new highs as targets. If we break below the green triangle support trend line, I would expect price to move towards the bigger blue rectangular area near 90.
The daily chart is showing that currently the US dollar index is on the bear market. The index is looking to test the next support around the 95.50 level. However, a rebound should be expected when the index manages to reach that zone. However, the index could move with a downward bias too, if USDX makes a breakout of the 95.50 level.
USDX has recovered from losses incurred this week, but the intraday bias is still bearish as the 200 SMA on H1 chart is pointing downwards. Next target on this road is the support level of 95.94, where we expect a breakout in order to fall until the 95.60 zone. MACD indicator is entering the negative territory.
Daily chart's resistance levels: 96.57 / 97.57 Daily chart's support levels: 95.50 / 94.70 H1 chart's resistance levels: 96.37 / 96.88 H1 chart's support levels: 95.94 / 95.60 Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USD Index breaks with a bearish candlestick; the support level is at 95.94, take profit is at 95.60, and stop loss is at 96.28.
The Dollar index remains in a short-term down trend and has only managed to bounce towards the 38% retracement and could not move higher. I believe we should expect new lower lows over the coming weeks as we have broken below the 4-hour Ichimoku cloud and below the trend line support. I believe we should at least reach the 95 area.
Red line - trend line resistance The Dollar index has made a bounce towards the 38% retracement and it looks like it has made a double top in that area. The kijun-sen (yellow line) resistance provides a strong wall for bulls that seem unable to break above it. At least for now. If this resistance at 96.80 is broken, we should expect price to reach the 97.30 level. A rejection at the kijun-sen resistance should bring prices lower to new lows. Support is at 96.10. If broken, I would expect price to move towards 95.
Red lines - triangle pattern The Dollar index remains inside the triangle pattern on the weekly chart. Price got rejected as expected at the upper triangle boundary and is pushing lower towards the lower triangle boundary. For now support is provided by the weekly tenkan-sen at 96.05, so a weekly close below this level will surely push price towards the 95-94.80 support. An upward reversal and breakout above 98.30 will confirm a new uptrend has started with targets above 101.
