USDX starts the year and the week with a bullish tone above the support level of 98.66 and the 200 SMA on the H1 chart. There is still a structure that is favoring more bullish bias towards the 98.90 level on a short-term basis because the fractals are configured for it. A strong support is seen around the 98.14 level. The MACD indicator is at the positive territory.
H1 chart's resistance levels: 98.90 / 99.07 H1 chart's support levels: 98.66 / 98.14 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 98.90, take profit is at 99.07, and stop loss is at 98.72.
On a short-term basis, the USDX has been doing some bullish moves above the support level of 98.66, after gaining strong momentum around the 200 SMA to the upside and now we can expect a rally towards the 99.07 level to test again that high. We cannot discard a pullback that could be extended to the support level of 98.66. The MACD indicator is at the positive territory.
H1 resistance levels: 98.90 / 99.07 H1 support levels: 98.66 / 98.14 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 98.90, take profit is at 99.07, and stop loss is at 98.72.
USDX technical analysis for January 5, 2016
The US dollar index held above the support at 98 yesterday and made an upward reversal towards 99. This is a sign of the dollar's strength. However, we are again close to critical short-term resistance where the index got rejected twice. Will there be a third time?
Blue line - trend-line support The US dollar index has once again reached the 61.8% Fibonacci retracement of the decline from 100.50. This is an important short-term resistance.The blue trend line is also an important support, so a break below 98.20 will open the way for a move towards 97.
The weekly candle in the US dollar index has transformed into a bullish one despite the heavy selling against the dollar early on Monday. A close above 99 for the week will imply that new highs are coming. Non-Farm Payrolls on Friday will play an important role in what the greenback will do next.
Daily analysis of USDX for January 06, 2016
USDX is doing some pullbacks around the 99.58 level after a bullish momentum gained above the support zone of 98.90. At H1 chart, we should note the Index is forming a higher high pattern that can be looking to reach the 99.87 level, and eventually the 100.00 key psychological zone. MACD indicator is entering negative territory.
H1 chart's resistance levels: 99.58 / 99.87 H1 chart's support levels: 99.07 / 98.90 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 99.58, take profit is at 99.87, and stop loss is at 99.31.
Daily analysis of USDX for January 06, 2016
USDX is doing some pullbacks around the 99.58 level after a bullish momentum gained above the support zone of 98.90. At H1 chart, we should note the Index is forming a higher high pattern that can be looking to reach the 99.87 level, and eventually the 100.00 key psychological zone. MACD indicator is entering negative territory.
H1 chart's resistance levels: 99.58 / 99.87 H1 chart's support levels: 99.07 / 98.90 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 99.58, take profit is at 99.87, and stop loss is at 99.31.
The US dollar index has reversed as expected, although it still has the potential to make one more new higher high closer to 100 before reversing. With Non-Farm Payrolls on Friday, guessing where the dollar is heading is very difficult. The best thing to do is to wait and trade after the Friday announcement.
Blue line - trend-line support The US dollar index has almost reached the 78.6% Fibonacci retracement and reversed. However, the price remains above the 4-hour cloud support and above the blue trend line. As long as we are above the 98 level, we could expect a move higher towards 100.
On the daily chart, the US dollar index is fully supported by the Ichimoku cloud and trades above both the tenkan-sen and kijun-sen indicators. The price is making higher highs and higher lows. A daily close below 98.80 will be the first sign of a bearish reversal. If this happens, then we should find support at 97.
There is a corrective phase ongoing at USDX, which could test the support level of 99.07 again in coming days. However, the overall structure is still pointing to the upside, and that is why the bullish bias is still strong. The 200 SMA is pointing to the upside and a breakout around the resistance level of 99.58 will expose the Index to test the 99.87 level.
H1 chart's resistance levels: 99.58 / 99.87 H1 chart's support levels: 99.07 / 98.90 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 99.58, take profit is at 99.87, and stop loss is at 99.31.
USDX is currently trading into a very strong intraday bearish bias, after a decline held since the start of yesterday's Asian session. The uncertainty around the world regarding geo-political topics are on the floor and producing a kind of risk aversion on most of the trading assets. We can expect a strong bottom to be found around the 98.10 level. MACD indicator is at negative territory.
H1 chart's resistance levels: 98.39 / 98.79 H1 chart's support levels: 98.10 / 97.82 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 98.39, take profit is at 98.79, and stop loss is at 97.99.
The US dollar index has reversed as expected towards the short-term trend line and cloud support. It is preferred to be neutral today as we await for the NFP data release from the US.
Blue line - trend-line support The US dollar index is testing the cloud and trend-line support at 98.30. Breaking below it will open the way for a move below 97. On the other hand, an important resistance is found at 99.60. If it is broken, then we should expect previous highs to be tested.
The daily chart has turned neutral in Ichimoku terms as the price closed inside it yesterday. There are increased chances now to see the lower boundary of the cloud if yesterday's highs are not broken upwards. Important news will come out today that will influence the trend so traders should be patient.
Technical analysis of Dollar Index for January 11, 2016
Wave after wave, the USDX was producing higher highs and higher lows up until December 3, 2015, when the price fell sharply. After the drop, the price consolidated for over a month and finally on January 7, 2016 the Dollar Index broke below the ascending channel. Fibonacci applied to the channel breakout point shows that after the breakout, the price rejected R2 (61.8%) with the spike and closed below R1 (50%). In addition, after the channel breakout, the price broke below the S1 (38.2%) support. Overall, it seems that another corrective wave down is coming. Consider selling the USDX while the price is near R1 (98.70), targeting the S3 (96.90) support area that is the final Fibonacci target based on the channel breakout point. Support: 98.26, 97.74, 96.88 Resistance: 98.70, 99.12, 99.65
