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01.07.201609:16 Forex Analysis & Reviews: Technical analysis of USDX for July 1, 2016

Long-term review

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The Dollar index remains inside the triangle consolidation pattern. I continue to expect the Dollar index to break to the upside and move towards 99.50 over the coming weeks. I remain bullish in the Dollar.

Black lines - triangle pattern

The Dollar index is in a short-term neutral trend. Support is at 95.75-95.60 and resistance is at 96.20-96.45. This price formation suggests that traders should be neutral and wait patiently for a breakout before opening new positions. I believe that the instrument is most likely to break upwards.

The weekly candle is moving back above the weekly kijun-sen (yellow line indicator) and remains inside the weekly Kumo. Indecisiveness is clear this week as the weekly candle has distinctive upper and lower tails. It is important to see how this week ends so we would have more information on what to expect next week.

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