empty
 
 
27.10.2016 08:58 AM
Technical analysis of USDX for October 27, 2016

The Dollar index has pulled back towards the lower channel boundary and the top of the support range which I mentioned yesterday. The index still looks like it is making a bearish reversal and I would expect more Dollar weakness over the coming weeks.

This image is no longer relevant

Green lines - bullish channel

Red line - medium-term support trend line

Price is testing the lower channel support at 98.40. A break below it will open the way for a push towards the Kumo cloud at 98-97.80 area. The bearish divergence has warned dollar bulls and I believe a major top is possible.

This image is no longer relevant

Red lines - long-term trading range

Green line - medium-term trend line support

The weekly candle is shaping up to be a very bearish one confirming trend reversal. A weekly close below 98.30 will be a bearish signal. Important long-term resistance is found at 99.50, so even if we make a higher high, the upside potential is very limited. Bulls need to be very cautious as I believe we can see a bigger degree reversal here.

Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $1000 more!
    In April we raffle $1000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback