USDX technical analysis for November 18, 2015

The US dollar index remains in a bullish trend but it is very fragile. There are many signs that a reversal could start any time soon, so it is preferred for bulls to raise their stops and protect their profits.

Blue lines - bullish channel

The US dollar index is trading inside a bullish channel and is above the daily cloud. Daily support is found at 98.80 and next one at 96.77. So, a daily close below 98.80 will open the way to a short-term correction lower. Crucial support for bulls is seen at 93.80.

The weekly chart shows that this week's candle is testing the important resistance area around the previous highs. A new higher high is very probable but bulls should be cautious and protect their positions by raising their stops. The trend is bullish, but there are also signs that we must be cautious.The material has been provided by InstaForex Company - www.instaforex.com