08.09.201709:30 Forex Analysis & Reviews: Technical analysis of USDX for September 8, 2017

Long-term review

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The Dollar index as expected is making new lows. Trend remains bearish and after the rejection signals on the daily chart, our plan is getting verified.

The Dollar index is below both the tenkan- and kijun-sen indicators. Price is making lower lows and lower highs. Trend is clearly bearish. There are some divergence signs that provide a warning for Dollar bears but there is no sign of a reversal yet. Short-term resistance is at 91.70-91.90.

Red lines - bearish channel

Purple lines - megaphone pattern

On a weekly basis the index is oversold, inside the bearish channel, below the weekly Kumo and approaching the lower end of the megaphone pattern. The lower trend line of the megaphone pattern is around 90.50 so this could very well be a target to complete the entire downward move from 103.80.

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