21.10.201514:47 Forex Analysis & Reviews: USDX technical analysis for October 21, 2015

Long-term review

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The US dollar index is testing short-term resistance and the US dollar is not as week as last week. There is a possibility of a breakout higher if bulls manage to push the price above 95. The longer-term trend remains neutral as the price continues to trade inside a big bullish flag pattern as shown in the weekly chart.

Black lines - wedge formation

The US dollar index is trading inside the Ichimoku cloud in the 4-hour chart. This means that the short-term trend is neutral. The price is forming a wedge formation with boundaries at 95 and at 94.75. We expect a small rally or a sharp correction lower.

Black lines -bullish flag pattern

The weekly chart remains inside the weekly cloud and inside the big bullish flag pattern. A trend is neutral over the last few months as can be seen in the weekly chart above. The US dollar index is trading sideways inside a trading range. Best strategy is to wait for a breakout before opening mid- to long-term positions.

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