26.10.201510:45 Forex Analysis & Reviews: USDX technical analysis for October 26, 2015

Long-term review

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The US dollar index has reached an important resistance area and a pullback is justified at current levels. Bulls should be very cautious in case the index makes full bearish reversal.

Red line - resistance

The US dollar index is trading above the Ichimoku cloud. It has already broken the previous high of 96.50. A rejection at the resistance line of 97.25 could push the index back towards the Ichimoku cloud support at 95.50.

Red line -weekly resistance

Green line -weekly support

The USDX bounced from the Ichimoku cloud towards the upper bullish flag boundary and we can see a rejection. It is still too early to get bearish, but this is the level with the best risk-reward ratio. Stop for short positions is very close and a pullback towards the weekly cloud support is justified. Bulls should be very cautious and raise their protective stops.

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