On the daily chart, the USDX remains supported above the 95.83, where the bottom is expected in coming days. Rebounds are expected to allow the index to test that resistance zone placed around the level of 96.38. If the USDX succeeds to consolidate above that level, it will test the zone around 96.91. The MACD indicator remains at the positive territory.
There is some dynamic support found at the 200 SMA on the H1 chart, which could give some bullish momentum to the index pushing it higher towards new key levels. This is also supported by the current moving average location in this time frame and eventually the USDX could test the level of 96.15.
Daily chart's resistance levels: 96.38 / 96.91 Daily chart's support levels: 95.81 / 95.26 H1 chart's resistance levels: 96.15 / 96.30 H1 chart's support levels: 95.94 / 95.77 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 96.15, take profit is at 96.30, and stop loss is at 96.00.
The US dollar index continues to trade below the important resistance of 96.60, but above the Ichimoku cloud in both the 4-hour and weekly charts. The price is getting closer to the important resistance of a bullish flag in the weekly chart. Soon, we will have a breakout or a rejection.
Red lines - triangle pattern The US dollar index is testing the upper triangle boundary once again. The price is testing the level of 96.60, and a daily close above this level will open the way to much higher levels around 98 and ,why not, new yearly highs. Short-term support is found at 96.20 and then at 95.80. Resistance is seen at 96.60.
Red line - resistance Green line - support The weekly chart remains unchanged. The price is still inside the bullish flag pattern and above the weekly cloud support. Bulls will need to show strength soon. A rejection at the red trend-line resistance will be a very bearish sign that could bring the index price back inside the cloud and towards the green support trend line.
The USDX is still forming a higher high pattern on the daily chart, which is looking for an opportunity to trade higher. The resistance level of 96.38 is still strong, and as long as the index continues to move below that zone, we should expect some pullbacks towards the support zone of 95.83.
On the H1 chart, the index did a breakout above the level of 96.15, and now its performing bullish consolidation to breakout the resistance zone of 96.30, towards the next area around the level of 96.46. The 200 SMA is still pointing to the upside and the MACD indicator looks overbought in this time frame.
Daily chart's resistance levels: 96.38 / 96.91 Daily chart's support levels: 95.81 / 95.26 H1 chart's resistance levels: 96.30 / 96.46 H1 chart's support levels: 96.15 / 95.94 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 seen at 96.30, take profit is at 96.46, and stop loss is at 96.15
There is nothing new regarding the US dollar index as the market awaits the announcement of the Non-Farm Payrolls today. This piece of information will play a vital role for the direction the market will take from now on. The price remains above the short-term Ichimoku cloud, but also below previous highs resistance.
Red line - resistance Green line - support The US dollar index has formed a triangle pattern and we are currently below the upper boundary resistance at 96.60. With the NFP announcement today, it is advised to stay neutral until we have a clear signal. Will it be a breakout or a rejection, we do not know yet. But the safest way to trade it is to wait until the dust settles.
Red line - resistance Green line - support The weekly chart has nothing new for us. The price remains trapped inside the trading range of the bullish flag. We remain neutral waiting for a signal. Weekly resistance is at 97.50 and support is at 95.
On the daily chart, the USDX has been trading above the support level of 95.83, after rebound performed over there. However, we should expect some sideways moves at the end of this week. Also, the 200 SMA is turning into the neutral territory, as the MACD indicator is headed towards the same area.
A current short-term outlook is already calling for more upside room for the USDX, because the 200 SMA rejected sellers' price action. Also, we are still expecting a breakout above the level of 96.30, which should open the door to the level at 96.46 level. The MACD indicator is entering the neutral territory and the structure is turning into the bearish bias.
Daily chart's resistance levels: 96.38 / 96.91 Daily chart's support levels: 95.81 / 95.26 H1 chart's resistance levels: 96.30 / 96.46 H1 chart's support levels: 96.15 / 95.94 Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USDX breaks with a bullish candlestick; the resistance level is seen at 96.30, take profit is at 96.46, and stop loss is at 96.15.
The USDX continues to trade sideways between the levels of 96.38 and 95.83, in an effort to move higher and perform a consolidation for further rallies. However, as we can see on the daily chart, there are still high chances to see pullbacks below the support level of 95.83, across the zone of 95.26. The MACD indicator is entering the neutral territory.
On the H1 chart, we saw a strong downtrend during the Friday session, and the index is still trying to ride the bullish bias above the 200 SMA again. Currently, a breakout above the resistance level of 96.15 aims to open the door to test the zone of 96.30. A breakout below the level of 95.38 will unleash the bearish force at least in the short and mid-term.
Daily chart's resistance levels: 96.38 / 96.91 Daily chart's support levels: 95.81 / 95.26 H1 chart's resistance levels: 96.15 / 96.30 H1 chart's support levels: 95.94 / 95.38 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 96.15, take profit is at 96.30, and stop loss is at 96.00.
On the daily chart, the index remains trapped inside a bullish range established below the resistance level of 96.38, which is currently the sellers' area of interest where the USDX is facing strong bearish reaction. By the way, the support level of 95.83 is still a strong, and we are still following the overall bullish bias. The 200 SMA is slightly bullish.
The USDX did some signification rebounds during Monday's session, as it has been performing a consolidation above the 200 SMA with a higher high pattern formation ongoing. The resistance level of 96.16 should be broken in coming hours for a rally towards the 96.30 level. The MACD indicator is still at the positive territory.
Daily chart's resistance levels: 96.38 / 96.91 Daily chart's support levels: 95.81 / 95.26 H1 chart's resistance levels: 96.15 / 96.30 H1 chart's support levels: 95.94 / 95.38 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 96.15, take profit is at 96.30, and stop loss is at 96.00.
The US dollar index continues trading inside the big triangle pattern. I prefer to stay neutral and wait for a breakout before taking any actions. I still believe that eventually the index is going to break to the upside and confirm the start of a new upward move towards new highs.
Red line - resistance Green line - support The US dollar index is inside the Ichimoku cloud. It got rejected at the upper cloud boundary and this is a bearish sign. It means that we can see the index move towards the support green trend line and test it.
Red line - resistance Green line - support The weekly chart remains unchanged. The trading range is getting narrower. The price holds above the cloud support. It keeps the hopes for bulls alive. It will be an important buy or sell signal if either trend line is broken. The bullish flag pattern implies that the upside breakout is more probable.
USDX technical analysis for October 7, 2015
The US dollar index is strengthening today as the price is very close to the support area around 95, but it is expected to trade inside the longer-term triangle pattern. The US dollar index is mainly moving sideways during the last month. I expect a breakout to take place soon.
Red line - resistance Green line- support The US dollar index is trading inside the Ichimoku cloud in the 4-hour chart. The price is also inside the short-term triangle pattern. Support is seen at 95 and resistance is expected at 96.60. A breakout at any level will give a new trend.
Red line - resistance Green line - support The weekly chart remains above the weekly Ichimoku cloud, but still inside the bullish flag pattern. The price remains trapped between the weekly kijun- and tenkan-sen indicators. This confirms the neutrality of the trend. Waiting for a breakout before opening a position is my preferred strategy.
The USDX is trying to perform a pullback towards the support zone of 95.26, where a rebound should be expected on the daily chart. This scenario could unfold in the near term as the index remains trapped above the 200 SMA in this time frame. However, a breakout below the level of 95.26 will expose the zone of 94.36.
On the H1 chart, we should note a strong pullback from the resistance level of 96.15, where is the zone of 200 SMA, and now the index could test the support zone of 95.38. If the USDX does a breakout below that territory, it will fall to the level of 95.03. The 200 SMA is pointing to the downside, and the MACD indicator is entering the negative territory.
Daily chart's resistance levels: 95.83 / 96.38 Daily chart's support levels: 95.26 / 94.36 H1 chart's resistance levels: 95.94 / 96.15 H1 chart's support levels: 95.38 / 95.03 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 95.94, take profit is at 96.15, and stop loss is at 95.73.
