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29.07.201608:55 Forex Analysis & Reviews: Technical analysis of USDX for July 29, 2016

Long-term review

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The Dollar index continues to slide lower mainly because of pressure in USDJPY. The Dollar index has showed false breakout signs and this is bearish for the short- and medium-term. I continue to believe that as long as price is below 96.70-97 we should expect a deeper correction towards 95.

The Dollar index is trading below the 4 hour Kumo and this is bearish. Price should at least reach the 38% Fibonacci retracement at 95.80 although I believe that even the 61.8% Fibonacci retracement is possible. Resistance is at 96.70. Support is at 95.80.

The weekly candle is an ugly bearish reversal candle rejected at the upper cloud boundary and breaking below a thin cloud. The weekly kijun- and tenkan-sen are to be tested next week. The current price formation gives more chances of a deep correction towards 95. The bearish view will be canceled if price manages to reverse higher above 97.

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