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22.04.201608:58 Forex Analysis & Reviews: Technical analysis of USDX for April 22, 2016

Long-term review

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The Dollar index held above support yesterday, successfully re-tested the broken trend line resistance and bounced. The Dollar made an impressive bullish reversal and broke above short-term resistance and is showing signs of strength. This is not the time to be bearish in the Dollar.

Black line - resistance trend line (broken)

The Dollar index is trying to break above the 4-hour Kumo. Support is critical at 94 as this level was touched three times and prices reversed higher. Resistance is at 95.20 and a break above that level will open way to a push towards 96 at least.

Black line - trend line resistance

The Dollar index has broken above the downward sloping trend line resistance on the daily chart. Yesterday's candle is a bullish hammer and the long tail below the main body of the candle suggests that the Dollar index is well supported at current levels. As I have been saying for several days, this is not the time to be bearish in the Dollar.

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