For Traders

Analytical Reviews

Technical analysis

09.02.201511:13 Forex Analysis & Reviews: #USDX technical analysis for February 9, 2015

Long-term review

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

The Dollar index made an impressive upward reversal on Friday; and now it is back testing this breakout. The price has broken the short-term resistance area and has given a buy signal that could target 100 over the coming weeks as long as we hold above the last weeks lows.

Green line = resistance

The Dollar index, as shown on the 4-hour chart, has given a buy signal on Friday by breaking above the Ichimoku cloud and above the green trend line resistance. The downward move from 95.50 is overlapping and thus corrective. The reversal that stopped the sequence of lower lows and lower highs implies that trend is changing to neutral and if we see higher highs and higher lows we will confirm bullish trend change.

The weekly chart remains fully bullish as the price continues to trade above the important support by the tenkan-sen (purple line) at 91.55 and the long-tailed weekly candle suggest increased buying interest. I expect the Dollar index to continue higher towards 100 over the coming weeks. Important support is the last weeks lows. Breaking below will increase selling pressures towards 91.50.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.