FX.co ★ Technical analysis of USDX for July 7, 2016

The US dollar index is backtesting the breakout level of 96. Price broke above the consolidation range of last week and now it is backtesting the broken resistance. The NFP numbers tomorrow will influence the future trend of the dollar index with chances favoring bulls.

The dollar index is backtesting the broken black trend line and the 4 hour Kumo (cloud). The trend is bullish as price remains above the cloud and above the trend line. Resistance is at the recent high of 96.50. A breakout above it will be a very bullish sign. Support is at 95.40 and next, at 94.90.

The weekly candle is shaping up to be a reversal candle as price is trying to break above the weekly kijun-sen (yellow line indicator) and move inside the weekly cloud. With price above the weekly trend line resistance and NFP numbers announced tomorrow, I believe the dollar is expected to make a strong move upwards.