The Dollar index is trading around support although it has broken below 98.30 support earlier today. I'm bearish the Dollar index expecting a test of 97 at least.
Blue line - trend line support The Dollar index is testing support of 98.30-98. A break below this level will bring in more sellers and push price towards 97 at least. Resistance is at 100. Shorter-term resistance is at 99.20.
The Dollar index has entered the Ichimoku cloud neutral area and is trying to break above it again. Resistance by the daily kijun-sen (yellow line indicator) is at 98.80. Support is at 98.20. A new low will push price towards 97. Otherwise it will not be a surprise to see recent high at 99.60 re-tested.
The short-term outlook is still calling for a possible resume of bullish bias in the USDX, because during last session, the Index did a failed breakout at the 200 SMA to the upside on the H1 chart, but it remains supported by the level of 98.39. A rebound at current levels will open the door to test the 99.00 psychological level. The MACD indicator remains 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 bounced towards the 99 resistance level and I expect more selling pressures to push the price lower to test the 98 support area.
Blue line - support Red line - resistance The US Dollar index is mainly moving sideways as the price holds above the 98 support and below 99 resistance. I believe that the US Dollar index will eventually break support and push lower towards at least 97. Even after the better-than-expected Non-Farm Payrolls announced last Friday, the US Dollar reaction has been very muted.
According to the daily chart, the US Dollar index has found resistance at the upper cloud boundary. A rejection there will confirm the bearish short-term trend, the index is in, with possible target at the lower cloud boundary. If support at 98 is broken, we should expect moves towards 97 at least.
The USDX is still trying to ride the overall bullish bias, as the support level of 98.39 rejected the price action from sellers. Now, there is a possible bullish consolidation ongoing above the 200 SMA and the Index is pointing to test the resistance zone of 99.22. If the Index breaks this zone, then we can expect a rally towards the 99.49 level.
H1 chart's resistance levels: 99.22 / 99.49 H1 chart's support levels: 98.79 / 98.39 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 99.22, take profit is at 99.49, and stop loss is at 98.94.
The Dollar index still holds above the medium-term upward sloping trend line support but looks like momentum is weakening near the 78.6% Fibonacci retracement of the latest decline.
Blue line - trend line support The Dollar index is trading above the Ichimoku cloud and above the blue trend line support. Although early on Monday morning when markets opened price broke below it, bulls stepped in strongly and pushed prices back towards 99.
The Dollar index is just below the 78.6% retracement resistance. This is an important resistance level and a reversal is highly probable in this area. A break below 98 will be a strong sell signal with target at least near 97. Short-term support is at 98.80-98.70, so a break below that area will give an initial reversal signal.
At the H1 chart, the USDX is forming a higher high pattern below the resistance level of 99.22, as we're expecting more upside moves in the coming days. We should note that the support zone of 98.79 could be strong in a short-term basis, because it's in the 200 SMA price zone. This scenario should be invalidated when the Index breaks the 98.39 level.
H1 chart's resistance levels: 99.22 / 99.49 H1 chart's support levels: 98.79 / 98.39 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 99.22, take profit is at 99.49, and stop loss is at 98.94.
The Index is still doing a pullback from the resistance level of 99.22, and we can see a bottom around the 200 SMA price zone (98.79 support level). That's why we're with a dynamic support idea over there, in order to re-take the bullish path in a short-term basis. A breakout above the 99.22 level will expose the 99.49 level. MACD indicator is at negative territory.
H1 chart's resistance levels: 99.22 / 99.49 H1 chart's support levels: 98.79 / 98.39 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 99.22, take profit is at 99.49, and stop loss is at 98.94.
The US dollar index made a small pullback yesterday to just below 99 and held above short-term support of 98.80. The initial rejection in the area of 99.35 came as we expected. But I continue to expect a deeper correction and not a break above 100.
Blue line - support trend line The US dollar index is holding above both the Ichimoku cloud and the blue support trend line. A trend remains bullish but I believe we should expect a reversal and a break below the cloud and the trend line. This will give a sell signal with a high probability of reaching 97 and lower.
In the daily chart, the price remains above the Ichimoku cloud. Support is seen at 98.80. A daily close below that level will be a bearish signal. Next support is seen at the kijun-sen (yellow indicator) at 98.40. The structure of an upward move in the US dollar index is choppy and overlapping since early December. I believe that one more leg down should be expected similar to the decline from 100.50 to 97.20.
On the H1 chart, we should note that the bullish path is alive above the 200 SMA, and the price action is showing strength of bulls. One scenario is calling for a breakout above the level of 99.22, but we can still expect a sideways move here until the index re-tests the support zone of 98.79 in coming days. The MACD indicator is at the positive territory.
H1 chart's resistance levels: 99.22 / 99.49 H1 chart's support levels: 98.79 / 98.39 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 99.22, take profit is at 99.49, and stop loss is at 98.94.
The USDX is still showing some declines resisting in some way to advance in the bullish bias, which is presented on an overall basis. However, the index remains trading above the support level of 98.79 and the 200 SMA in the H1 chart. So, this outlook cannot be fully discarded yet as the USDX could test the resistance level of 99.22 in order to do another rally towards the level of 99.49.
H1 chart's resistance levels: 99.22 / 99.49 H1 chart's support levels: 98.79 / 98.39 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 99.22, take profit is at 99.49, and stop loss is at 98.94.
