FX.co ★ Technical analysis of USDX for August 23, 2016

The Dollar index is pulling back towards the medium-term upward sloping trend line support that was held when the index made its latest low and reversal. There are some divergence signals that Dollar bears should not ignore, however trend remains bearish.

Red line - resistance

Blue line - support

The Dollar index is testing the blue trend line support, while it remains below the 4 hour cloud and the red trend line resistance. Trend is bearish and if the blue trend line is broken we should expect at least one more new low below 94. Resistance is at 94.97 and support at 94.20.

On a weekly basis price is about to break an important support trend line. Price is below the tenkan- and kijun-sen indicators implying more downside could be expected. The weekly view is not optimistic for the Dollar. A weekly break below the trend line will put 93 and 92 to the test.