The Dollar index although it made a new higher high on Friday, the price finally rejected at the resistance level. We could see a pullback towards 94.90, but a break below that level will increase chances of a deeper correction towards 92.
The US Dollar Index as can be seen in the 4-hour chart above. It has managed to break above the Ichimoku cloud. The price is still below the 78% retracement resistance as this is the last stand for bears. A pullback from current levels will push the index towards 95.
Red line - resistance Green line -support The US Dollar Index continues to trade inside the bullish flag pattern and above the weekly ichimoku cloud. The trend is mainly neutral and I expect the price to move back towards the green trend-line support in order to complete the corrective formation. Breaking above the red trend-line resistance will confirm that a new upward move has started.
The US Dollar Index is reversing lower as we expected from the 78.6% Fibonacci retracement. The index is going to test the cloud support at 94.90-94.70. If this support is broken, we should expect a test of the recent lows at 93.
The US Dollar Index reverses from the 78.6% retracement. The price is above the Ichimoku cloud and above the kijun-sen indicator (yellow line). Bulls are still alive as bears are trying to regain control in the market. Support is at 94.90 and 94.70. Resistance is at 96.30. A daily close above 96.30 will push the index towards 98.30.
Red line - resistance Green line - support The US Dollar Index got rejected at the kijun-sen this week (yellow indicator) and should move towards the cloud support or even the green trend-line support. The 38% retracement is my target. I remain short-term bearish but without taking my mind away from the bullish flag pattern that is being formed.
On the daily chart, the USDX remains above the support level of 95.83 and is looking for a way to perform a rally towards the next resistance around the level of 96.64. Currently, our view is still sideways, but the USDX could perform a pullback towards the support level of 95.26. The MACD indicator is turning neutral.
The USDX is still trading sideways on the H1 chart, but current higher moves take place above the 200 SMA, which is neutral. The nearest resistance is located around the level of 96.09, where we should expect a breakout in order to test the next high at the level of 96.39 in the short term. The MACD indicator is at the negative territory.
Daily chart's resistance levels: 96.64 / 97.08 Daily chart's support levels: 95.83 / 95.26 H1 chart's resistance levels: 96.08 / 96.39 H1 chart's support levels: 95.68 / 95.33 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 96.08, take profit is at 96.39, and stop loss is at 95.77.
The US Dollar Index has made a small pullback but the dollar remains strong. A possible bullish flag pattern is formed also in the short-term so bears should be very cautious. A breakout above 96.20 will confirm the 98 as the first target.
The Dollar index is trading above the Ichimoku cloud in the four chart and is forming a bullish flag. Flag breakout will happen if price breaks above 96.20 and this will target at least 98. A break below the Ichimoku cloud support at 94.80 will decrease dramatically the chances of the pattern.
Red line- resistance Green line - support We can see a bullish flag pattern in the weekly chart as well but the price remains below the kijun-sen resistance (yellow line indicator). This could mean that a pull back towards the recent lows or the Ichimoku cloud is more probable than a breakout now. A break above the red trend-line resistance will give me a huge bullish signal with new highs as target.
The USDX has been forming a kind of higher high pattern above the support level of 95.26. The resistance zone of 95.83 is still the focus of concern on the daily chart. If the index does a breakout over there, it will reach the level of 96.64. However, the current corrective moves could push the index lower until the 200 SMA.
On the H1 chart, there is a double pattern formation above the support level of 95.33, but is still moving below the 200 SMA. However, we should expect a breakout at the level of 95.68, a move which could open the doors to the level of 96.09 is expected in the short term. Currently, a consolidation below 95.33 will expose the USDX to test the level of 95.00.
Daily chart's resistance levels: 95.83 / 96.64 Daily chart's support levels: 95.26 / 93.86 H1 chart's resistance levels: 96.08 / 96.39 H1 chart's support levels: 95.68 / 95.33 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 95.68, take profit is at 96.09, and stop loss is at 95.27.
The US Dollar Index has broken above the bullish flag pattern formation but not above the resistance level of 96.20. The trend favors bulls, but it rejection takes plase here, the price will drop towards 94.90.
Gold price is trading above the Ichimoku cloud in the 4-hour chart and this is a bullish sign. A rejection at current levels could bring the index back towards the cloud support around 94.90. However I'm medium-term bullish as long as price is above the cloud. A break above 96.20-96.30 will be a bullish sign of trend continuation towards 98.
Red line - resistance Green line - support The weekly chart has not provided us with any new information yet. The price remains trapped inside the long-term bullish flag pattern and this week's candle is still below the kijun-sen (yellow line) resistance. The more it takes bulls to break above this resistance the more probable ejection and reversal are. A break above the red resistance trend line will be a very important bullish signal.
On the daily chart, bullish reaction is observed above the support level of 95.26 and we could be in front of a possible rally, which could be set up towards the resistance zone of 96.64 in coming days. The 200 SMA is turning neutral in this time frame, as the index continues to extend its rebound.
There is a strong resistance placed around the level of 96.40 on the H1 chart and the USDX will need to overcome that zone in order to perform new rallies. We should note the double bottom pattern formed below the 200 SMA a couple of days ago. Immediate resistance is still placed at the level of 96.09. The MACD indicator is entering the neutral territory.
Daily chart's resistance levels: 95.83 / 96.64 Daily chart's support levels: 95.26 / 93.86 H1 chart's resistance levels: 96.09 / 96.34 H1 chart's support levels: 95.68 / 95.33 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 96.09, take profit is at 96.34, and stop loss is at 95.85.
The USDX is still alive in the bullish path above the support level of 95.83, and current resistance zone of 96.64 could produce a pullback. However, this corrective move should have a short duration, as the USDX is expected to test the resistance level of 97.23.
On the H1 chart, the USDX is forming a higher high pattern above the support level of 96.34 and we should see a test around the resistance level of 96.63. If a breakout happens over there, the index will rise to 97.03. The MACD indicator is entering the negative territory, and this would mean the USDX could perform corrective moves soon.
Daily chart's resistance levels: 96.64 / 97.23 Daily chart's support levels: 95.83 / 95.26 H1 chart's resistance levels: 96.63 / 97.03 H1 chart's support levels: 96.34 / 96.09 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 96.63, take profit is at 97.03, and stop loss is at 96.24.
The US Dollar Index broke above the bullish flag pattern and above the short-term resistance of 96.20. The trend is bullish but there are some signs of weakness. With NFP numbers announced today, traders should be very cautious as volatility is expected to rise sharply today.
Green line - support The index is in a bullish short-term trend moving towards higher highs and higher lows. Support is seen at 96.10 and 95.80. A breakout below these levels will probably push the index even lower towards the cloud support at 95. In case of a breakout below the cloud support, we will find the next support at 94.
This week's candle is still below the kijun-sen (yellow line indicator). This is not a good sign. A rejection at these levels will be a bearish signal. Bulls need to be very cautious as my forecast of the second pullback towards 92 is still in play.
The US Dollar Index remains in a short-term trend as the price continues to hold above the short-term support indicators. However, an inability to make a strong upward move after the new short-term high is a bearish sign.
Green line - resistance The US Dollar Index is in a bullish short-term trend as the price is moving towards higher highs and higher lows above the Ichimoku cloud. However, we need to break above the green trend-line resistance in order to help bulls hold control of the trend.
Red line - resistance Green line - support The US Dollar Index did not manage to break above the kijun-sen resistance. Bulls need to see a weekly close above it in order to gaim momentum to test the resistance trend line. Otherwise, we will get a strong rejection soon that will push the price towards the weekly cloud support at 94.50. The more time passes the less possible is a move lower towards 92. That is why my pullback target is at 94.50
