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08.10.201509:57 Forex Analysis & Reviews: USDX technical analysis for October 8, 2015

Long-term review

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The US dollar index is testing important trend-line support of the triangle pattern. Unless it breaks it, we can see another bounce towards 96. However, it is preferred to stay neutral as the price remains inside the short-term triangle. The long-term bullish flag pattern remains valid.

Red line - resistance

Green line - support

The US dollar index has broken below the Ichimoku cloud and is testing the green upward sloping trend-line support. Things do not look good for USD bulls. To make the short-term trend bullish again, we need to see a break above 95.90. Critical resistance for the medium-term trend is at 96.60.

Red line - weekly resistance

Green line - weekly support

The bullish flag pattern remains valid. The price is approaching the weekly Ichimoku cloud while it remains inside the trading range of the flag pattern. A breakout above it will provide a buy signal. However I would prefer going long after breaking the 96.60 resistance level.

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