FX.co ★ Technical analysis of USDX for July 4, 2016

The dollar index remains inside the triangle pattern with no clear trend direction. The price looks like it needs more time to consolidate a big upward spike after the Brexit result. Space inside the triangle is running out so this week I expect to see a breakout with the most probable direction to the upside.

Black lines - triangle pattern

The dollar index is trading above the cloud but still inside the triangle pattern. Support is at 95.60 and resistance, at 96.25. The trend is neutral so traders should be very cautious. Buying near support and selling near resistance is preferred. Best strategy however is to wait for the breakout.

The weekly candle is out and below the weekly Kumo. Unless we see a strong upward move and close this week, things will be very difficult for the dollar bulls. A pullback at least towards 94.85 to test back the broken red trend line will be justified. Weekly resistance is at 95.90-96.05.