For Traders

Analytical Reviews

Technical analysis

20.10.201609:20 Forex Analysis & Reviews: Technical analysis of USDX for October 20, 2016

Long-term review

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

The Dollar index continues to consolidate inside the triangle pattern. Trend remains bullish as price remains above the 4 hour Ichimoku cloud. There are several warning signs of a Dollar top here but we could still push towards 99 before turning lower.

Green lines -bullish channel

Blue lines - triangle pattern

Red line - important long-term support

The Dollar index has broken out of the bullish channel but is trading sideways inside the triangle pattern above the Ichimoku cloud support. Short-term support is at 97.60 while resistance is at 98.20. A break of either of the two levels will produce a trading signal with 96.50 and 99 as possible targets respectively.

Red line - support

Green line - resistance

On the daily chart, I have pointed out the two important short-term levels. Oscillators are diverging. This is a warning but only if price breaks below 97.60 we will have confirmation of a short-term trend change. A medium-term trend will change if price breaks below the Ichimoku cloud at 95.50-95.90 area. This is also where we find a very important support trend line from 91.90.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.