FX.co ★ Technical analysis of USDX for April 1, 2016

The Dollar index made a new lower low yesterday as we expected from our analysis. The trend remains bearish. Today, I believe we can see even lower levels but I do not believe this is the time to open short positions.

Blue line - support

The Dollar index made a new low but price came back up towards the broken support level for a back test. Stochastic is turning upwards from oversold levels and today we have a good chance to see some bullish divergence. We can see new lower lows in the index but not in the stochastic. This is not the time to open short positions. This is the time to protect short positions and look for longs.

The weekly chart continues to point lower as price got rejected at the upper cloud boundary and it is now in the middle of the Kumo (cloud). Price could test even 93, if the Dollar is pressured today after the NFP announcement. The trend remains bearish for a short-term prospective and neutral for a medium- to long-term prospective as price remains trapped inside the sideways channel.