USDX technical analysis for November 5, 2015

The US dollar index is in a breakout mode and in its next upward move, which is very strong if we take into account the shallow pullback it made. Dollar sellers are too weak and cannot produce any significant retracements for this upward move.

The US dollar index is above the Ichimoku cloud and making higher highs and higher lows. The price is breaking higher and support is found at 97.25 and then at 96.60. Bulls are in control and if we look at the weekly chart below, we can see a very important breakout of the bullish flag.

Red line - resistance

Green line - support

The bullish flag in the weekly chart has finally been broken upwards. Pullbacks are to be bought as this pattern implies new highs over the coming months. The US dollar index is breaking out of a multi-month sideways move and this is an important bullish signal for the greenback that should not be taken lightly bey dollar bears.

The material has been provided by InstaForex Company - www.instaforex.com