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05.02.201610:03 Forex Analysis & Reviews: USDX technical analysis for February 5, 2016

Long-term review

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The US dollar index has reached a new lower low, as we expected, hitting important weekly support levels. Bears should be very cautious today as there is a possibility of a reversal as we expect the NFP announcement today.

The trend remains bearish. The price is making a small sideways consolidation, and I will not be surprised to see a new low before the NFP announcement today. Resistance is seen at 96.86 and support is at 96.25. A bigger bounce towards 97.90-98.10 is possible today after the NFP.

As can be seen in the weekly chart above, the price has reached the weekly kijun-sen (yellow line indicator) and the Ichimoku cloud. This is important support, so I would prefer bears to take some profits. The longer-term trend remains sideways.

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