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

The Dollar index is rising after reversing from the 95 level and has crossed above short-term resistance levels. However price has still more obstacles ahead in order to confirm an important low is in.

The Dollar index remains below the Kumo on the 4-hour chart but is trading above the tenkan- and kijun-sen indicators. Resistance is at 96.30. Support is at 95. Bulls are in danger of seeing price get rejected at the Kumo and reversing. Bulls want to see a follow through of this bounce and a break above the 4-hour cloud.

On a weekly basis I have pointed out several times that the weekly kijun- and tenkan-sen indicators are very important support levels. Currently the weekly candle is shaping up to be a nice bullish reversal signal. This will imply more strength over the coming weeks with new highs above 97.30 a certainty. However a weekly close below 95 will be a bearish sign that will put 93 in danger.