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27.11.201509:44 Forex Analysis & Reviews: USDX technical analysis for November 27, 2015

Long-term review

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The US dollar index is testing the short-term support level, and as I mentioned in previous posts, bulls should be very cautious as a correction towards 97.50 is very possible before the next leg up.

Blue lines - bullish channel

Red lines - bearish divergence signs

The US dollar index is testing the lower channel boundary at 99.70.99.60. A four-hour close below 99.50 will open the way to a deeper correction at least towards the Ichimoku cloud support at 99.20. However, the main target remains at 97.50.

The stochastic oscillator is overbought for far too long and a downward movement is hugely justified at current levels, so bulls should consider taking profits. This does not mean that a bullish trend is over. The bullish trend will be in danger only if the price breaks below 93.80.

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