FX.co ★ Technical analysis of USDX for May 16, 2016

The Dollar index continued its upward move on Friday to new short-term highs but at the end it showed some weakness signs. The trend remains short-term bullish. The weekly reversal signal is very strong.

Price is trading above the Kumo and the trend line support. There are two bullish signs. Price is also above the kijun- and tenkan-sen indicators so this supports the bullish short-term trend. Support is at 94.30. Breaking below it could push price towards 93.60 where the 4 hour Kumo is found.

In the daily chart price has made a short-term reversal by breaking above the red trend line resistance. Important resistance is now the Kumo at 95.50. Bulls need to break out and above the daily Kumo in order for the longer-term bullish reversal scenario to be viable.