USDX technical analysis for March 1, 2016

The Dollar index continues to trade inside the bullish channel and has passed above the 61.8% Fibonacci retracement. The trend remains bullish. Overbought conditions in the oscillators provide a warning for bulls to be cautious.

Blue lines - bullish channel

With price making higher highs and higher lows inside the bullish channel, trend remains bullish. Price remains above the Ichimoku cloud. Price has broken above the 61.8% Fibonacci retracement. But bulls need to be extra cautious as a pullback is imminent. Important short-term support is at 97.75. Next support are is at 97.25-96.70.

The weekly chart shows how price bounced off the weekly Kumo (cloud) and has also broken above the two Ichimoku indicators (kijun- and tenkan-sen). However if a reversal occurs now, a lower high will not be a bullish sign. Bulls need to hold above the tenkan- and kijun-sen (red and yellow indicator lines) in order for this up trend to continue.The material has been provided by InstaForex Company - www.instaforex.com