Instaforex: USDX Index Analysis

[abu85]

Daily analysis of USDX for September 07, 2015

On the daily chart, the USDX continues to trade in favor of a bullish bias, looking for an opportunity to break the resistance level of 96.64. Of course, that will happen when the Index achieves in developing a good bullish pattern formation to continue it previous rally. On the other hand, the USDX is expected to perform another pullback towards the support level of 95.83.

The index is still trading sideways on the H1 chart, with a bullish consolidation above the 200 SMA. The next key resistance level is located around 96.63, where the USDX should make a breakout in order to reach new highs during the period of consolidation mentioned above. The MACD indicator is still at negative territory.

Daily chart's resistance levels: 96.64 / 97.23 Daily chart's support levels: 95.83 / 95.26 H1 chart's resistance levels: 96.34 / 96.63 H1 chart's support levels: 96.09 / 95.80 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 96.34, take profit is at 96.63, and stop loss is at 96.01.

 

[abu85]

USDX technical analysis for September 8, 2015

The US Dollar Index was rejected at the trend line resistance I showed in yesterday's analysis and pushed towards cloud support at 95.70. If the Dollar index breaks below the 95.60 support we should expect a push even lower towards 95. Otherwise, resistance at 96.40 is going to be tested.

Green line - resistance The US Dollar Index is trading above the cloud support and below the Green trend-line resistance. We have seen an initial rejection from the resistance trend line and a pullback towards cloud support that has held for now. I believe, it is more probable to continue lower towards 95 but if we breakout above the green trend-line, then the shallow correction will be completed and a new upward move will start.

Red line - resistance Green line - support The weekly chart remains inside the bullish flag trading range. The rice is still above the Ichimoku cloud but below the weekly kijun-sen (yellow line) resistance. Weekly support is found at 94.50-94. Resistance is seen at 97.80. I remain neutral waiting for an opportunity to get a signal from the direction of the breakout.

 

[abu85]

Daily analysis of USDX for September 08, 2015

The USDX had a quite day when the week began, as the Index was still trading below the resistance level of 96.64 with no changes in the current outlook for the medium and long terms. We could be in front of a higher high formation, which would give bullish momentum to the USDX to push it towards new highs.

On the H1 chart, the USDX has been trading sideways, but it still remains above the 200 SMA in this time frame. The resistance level of 96.34 continues to be the closest upside target. Another short-term outlook calls for a breakout below the moving average mentioned above, with targets at the lows that were reached during the trading seccion on September 1.

Daily chart's resistance levels: 96.64 / 97.23 Daily chart's support levels: 95.83 / 95.26 H1 chart's resistance levels: 96.34 / 96.63 H1 chart's support levels: 96.09 / 95.80 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 96.34, take profit is at 96.63, and stop loss is at 96.01.

 

[abu85]

USDX technical analysis for September 9, 2015

The US Dollar Index remains below the important trend-line resistance at 96.40 in the short term and at 97.80 in the long term. The price is moving right below important short-term resistance, so bulls need to be very cautious amid a possible pullback towards 94.50, which can take place.

Green line - resistance The US Dollar Index is above the Ichimoku cloud in the 4-hour chart but below the green trend-line resistnace. A break above 96.50 will be a bullish sign that could bring the price towards 97.50-98. Rejection here will push the price towards cloud support near 95.75.

Red line -resistance Green line - support The US Dollar Index remains below the weekly kijun-sen (yellow Ichimoku indicator). This implies that bears have increased chances to stay in the trend and push prices towards at least 94

 

[abu85]

Daily analysis of USDX for September 10, 2015

The index managed to stay above the support level of 95.83 during the wednesday's session, because the USDX continued to develop a bullish pattern on the daily chart. That is why we should put our focus on the resistance level of 96.64, where a rally should be expected in coming days, while the index continues to trade above the support level of 95.26.

On the H1 chart, the USDX did a pullback at the resistance level of 96.34 after it faced sellers' reaction over there. We expect another rebound towards that zone, because bulls are still strong enough to do intraday rallies, which should hold above the 200 SMA in this time frame. Thr MACD indicator is entering the negative territory.

Daily chart's resistance levels: 96.64 / 97.23 Daily chart's support levels: 95.83 / 95.26 H1 chart's resistance levels: 96.09 / 96.34 H1 chart's support levels: 95.80 / 95.54 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 96.09, take profit is at 96.34, and stop loss is at 95.86.

 

[abu85]

Daily analysis of USDX for September 11, 2015

On the daily chart, the USDX is extending losses towards the support level of 95.26, afte making a pullback around the level of 95.83. That is why we should be cautious when the index tests that zone, because a breakout to the downside could happen there. The 200 SMA is still neutral, but it could turn higher eventually .

The index is forming a lower low pattern on the H1 chart, below the resistance level of 95.54, and now the downside target is is seen at the level of 95.41. If the USDX does a breakout there, it could test the level of 95.20 in coming hours. In this time frame, the 200 SMA is turning bearish, so we should be aware of those moves downwards.

Daily chart's resistance levels: 96.64 / 97.23 Daily chart's support levels: 95.83 / 95.26 H1 chart's resistance levels: 95.54 / 95.80 H1 chart's support levels: 95.41 / 95.20 Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the US Dollar Index breaks with a bearish candlestick; the support level is at 95.41, take profit is at 95.20, and stop loss is at 95.61.

 

[abu85]

Daily analysis of USDX for September 14, 2015

The US dollar index finds short-term support at the 38% Fibonacci retracement around the 95 price level. Last week, the price got rejected at the resistance trendline and broke below the cloud. Backtesting of the broken cloud could see the price bounce towards 95.50, but overall short-term trend is bearish and could push the price to 94.

Red line - resistance Green line - support The US dollar index as we expected got rejected at the weekly kijun-sen resistance and pushes towards 94 weekly cloud support. A longer-term support inside the cloud is the 92 level where we find the 38% retracement. We are inside a bigger bullish flag pattern but will prefer to wait before trying any long positions again.

 

[abu85]

Daily analysis of USDX for September 14, 2015

The USDX is currently doing downward movements within a corrective phase, which seems to be very extended on the daily chart, because the index could retrace to the 200 SMA again. When the USDX tests that area, it could perform a rebound to ride the overall bullish trend

On the H1 chart, The USDX is moving below the resistance level of 95.20 with a lower low pattern formation, because it's looking for new monthly lows. The 200 SMA is also pointing to the downside, with near-term targets at the level of 94.77. The MACD indicator is still moving inside the negative territory and that is why bears are still an option here.

Daily chart's resistance levels: 96.64 / 97.23 Daily chart's support levels: 95.83 / 95.26 H1 chart's resistance levels: 95.20 / 95.41 H1 chart's support levels: 94.99 / 94.77 Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the US Dollar Index breaks with a bearish candlestick; the support level is seen at 94.99, take profit is at 94.77, and stop loss is at 95.21.

 

[abu85]

USDX technical analysis for September 15, 2015

The US Dollar index bounced as we expected from the 38% Fibonacci retracement level towards 95.50 as we mentioned in our last analysis. The price remains in a bearish medium-term trend as it is below the Ichimoku cloud. With Fed's rate decision on Thursday, I do not expect an important trend change or trend starting until then.

Green line - resistance The US Dollar Index remains below the green trend-line resistance and below the Ichimoku cloud. The price bounced off the 38% retracement and it could still move higher towards the kijun-sen at 95.66. Trend remains bearish in the short-term but we should keep in mind that the Fed's rate decision could provide the signal for a new trend to start.

Red line - resistance Green line - support With a bullish flag pattern being formed in the weekly chart, my most probable scenario after the Fed rate decision is to see a breakout and push above 98.30 and the start of a new upward move to new highs above 101-102.

 

[abu85]

Daily analysis of USDX for September 16, 2015

On the daily chart, the USDX has been trading above the support level of 95.26, after a bullish momentum gained during yesterday's session. Ahead of the Fed's decision on ots interest rate hike, we should expect moves between the 95.83 and 95.26.

The USDX is currently facing strong resistance around the level of 95.65 where the 200 SMA is located in the H1 chart. We should expect a pullback over there and then the Index could fall again until at least 95.41. Consolidation below that zone will open doors to a test at 95.20 during coming hours.

Daily chart's resistance levels: 96.64 / 97.23 Daily chart's support levels: 95.83 / 95.26 H1 chart's resistance levels: 95.65 / 95.83 H1 chart's support levels: 95.41 / 95.20 Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the US Dollar Index breaks with a bearish candlestick; the support level is at 95.41, take profit is at 95.20, and stop loss is at 95.61.