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28.09.201609:43 Forex Analysis & Reviews: Technical analysis of USDX for September 28, 2016

Long-term review

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The Dollar index continues to trade sideways between the important levels of 96.50 and 94.60. The sideways choppy action does not favor short-term traders; they'd better be patient.

Blue line - support

Red line - resistance

Green lines - trading range

The Dollar index continues to trade around the 4 Ichimoku cloud inside a tight trading range as depicted by the 2 parallel green lines. Upper resistance is at 95.80 while short-term support lies at 95.25. However, the most important support and resistance levels are defined by the triangle formation which shown by the blue and red trend lines.

Green line - important medium-term support

The weekly candle remains above the important green trend line support and has moved above the tenkan-sen indicator. A weekly close above the tenkan-sen may signal a move towards the Ichimoku cloud and the 96.50 level. The price being below the weekly cloud is not a good sign for bulls as it increases the chances of eventually breaking below the green trend line support at 94.60. Only a break above 96.50 will make me turn bullish on the Dollar index.

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