FX.co ★ Technical analysis of USDX for September 1, 2016

The Dollar index continues to trade in an uptrend but with oscillators at overbought levels providing divergence signs, Dollar bulls need to be very cautious. NFP figures are to be announced tomorrow and volatility is expected to pick up tomorrow.

Blue line - medium-term support

The Dollar index is making higher highs and higher lows. Trend remains bullish for the short-term after the breakout above the 4-hour cloud. Price held nicely above the blue trend line support and is now testing the resistance at 96.50. The most possible scenario for me is to see a price rejection tomorrow and a Dollar pullback.

The weekly candle is heading towards weekly cloud resistance at 96.50. This will be a great test for the medium-term trend. As long as price is above the green trend line support, bulls will remain in control with the bullish scenario having more chances of success.