FX.co ★ #USDX technical analysis for April 6, 2015

The Dollar index opened with a gap down today following the disappointing Non-Farm payrolls announcement on Friday, while the market was closed. The Dollar index looks very weak after the NFP announcement but is still trading inside the longer-term upward sloping channel and above the recent low.

Red line = support

Green line = resistance.

Blue lines =target 1:1projection

The Dollar index is trading above its recent low at 96.20 for now. The price is below the Ichimoku cloud. The trend is bearish for the short term. If support at 96.20 gets broken and the index makes a new low, I would expect the Dollar index to push towards 94 as shown in the chart above.

The Dollar index is testing the lower boundary of the upward sloping channel. The weekly candle stick has opened below the tenkan-sen (red line) indicator and the weekly close will be very important for the longer-term trend. Bulls will need to hold the 96 support and break above 98.60 resistance in order for the uptrend to resume.