FX.co ★ USDX technical analysis for October 16, 2015

The US dollar index made a bounce yesterday as we expected, but the price remained inside the downward sloping channel. There are great chances for a bigger upward reversal from current levels, but bulls need to be cautious as bears remain in control of a trend.

Blue lines - bearish channel

The US dollar index remains below the Ichimoku cloud and inside the bearish channel. The price needs to break above 94.75 in order to get a bullish sign. However, the most important bullish sign is expected if the price breaks above the Ichimoku cloud in the 4-hour chart. Support is seen at 93.80.

Green line -weekly support

The weekly candle remains inside the Ichimoku cloud trying to break above it. As I said yesterday, bulls need to break above the Ichimoku cloud in order to produce a bullish signal. The price remains inside the tightening trading range of a bullish flag. Important support is found at 92 and important resistance is seen at 95 and 97.