FX.co ★ Technical analysis of USDX for September 12, 2016

As I mentioned last week, the Dollar index was expected to move towards the upper cloud boundary near 95.50-95.60. The bounce was incomplete. Price shows rejection signs at very important levels. The 94.50-94.70 area remains of critical importance for traders.

Blue line - critical support trend line

The Dollar index has reached the black trend line resistance and got rejected. Price remains below the Ichimoku cloud while the stochastic oscillator is turning lower from overbought levels. The signs are not good for Dollar bulls as there seems to be not enough strength to break above the resistance.

On a daily basis price has reached the lower cloud boundary but there are signs of rejection. The green trend line is critical support and is found at 94.50-94.70 area. The cloud body is about to turn red with price below the Kumo. This is another bearish sign. A break below the green trend line will put a lot of pressure to Dollar bulls and we might even see a push below 92.