FX.co ★ Technical analysis of USDX for July 5, 2016

The dollar index is sliding lower with a weak bearish trend following the holiday of the 4th of July. I believe the dollar index will bounce strongly this week and start a new uptrend. Support at 95-95.40 is critical.

Black line - resistance

Price is trading just above the 4-hour Kumo (cloud) support at 95.45. Initial bounce signals show that support is respected and it will be difficult to break it. Resistance is at 96.10. A breakout above this level will open the way for a new uptrend towards 99.

Red line - trend line resistance (broken)

On a daily basis, price is above the Kumo and is back testing the broken trend line resistance. With a higher high and higher low since late April, the dollar index may be on the verge of staging a longer-term trend reversal. Overall I'm dollar bullish.