USDX technical analysis for March 16, 2016

The Dollar index is trading inside a triangle pattern. Since the FOMC meeting will take place today, we should expect some volatility in the forex market, and the dollar could get a clear direction today for its next move.

Red lines - triangle pattern

Support at 95.80 was held. Price however remains below the 4-hour Kumo (cloud). Important resistance is at 98.50. Stochastic is oversold. We can see whether a breakout or breakdown today. Watch 95.20 and 98.50 closely today.

Blue lines - sideways channel

On the weekly chart, we continue to see price trapped inside the trading range, but it is still above the Kumo (cloud). Tenkan- and kijun-sen remain neutral moving sideways with no clear slope. There are more chances that the Dollar index will break to the upside as support from below is very strong.