FX.co ★ Technical analysis of USDX for October 10, 2016

The Dollar index displayed impressive strength last week as it managed to move above 97 and is now trading above previous resistance of 96.50. Short-term trend remains bullish. Important resistance lies ahead.

Price is in a short-term bullish channel. Support is at 96.40. If this level is broken, we should expect a pullback towards 96-95.80. Resistance is at 97.25. A weekly close above 97.25 will confirm a bullish trend is back on track and bulls are in control of the longer-term trend. A weekly rejection at current levels and a pullback towards 95 will be a worrying sign.

Green line - support

Despite the strong upward move in the Dollar index last week, price remains trapped inside the long-term triangle pattern. Price has not broken above the weekly Ichimoku cloud but support still holds as price is making higher highs and higher lows. Bears will regain control only if price breaks the green trend line support.