23.03.201710:14 Forex Analysis & Reviews: Technical analysis of USDX for March 23, 2017

Long-term review

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The Dollar index has most probably bottomed and is reversing to the upside. The Dollar index has broken out of the downward sloping wedge and a bounce towards 100-101 is expected over the next two trading sessions.

Blue lines - wedge

Short-term support is at 99.25 and at 99.60. Resistance is at 100 and the next is at 100.80-101.There are also bullish divergence signals in the 4-hour chart. This strengthens the scenario of a strong bounce from the current levels.

Red line - resistance

Black line - neckline support

Green line - long-term support trend line.

The Dollar index as expected has reached very close to the Head and Shoulders neckline support at 99.25. The price is showing reversal signs. A bounce from current levels will find resistance at 101. Key resistance for the longer-term bullish trend is at 102.30. Support is critical at 99.25. If it is broken, I expect the Dollar index to test the long-term support green trend line.

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