USDX technical analysis for March 7, 2016

The Dollar index has reversed as expected and is now testing the 38% Fibonacci retracement support of the rise from 95.20 to 98.60. More downside is expected.

Blue lines - bullish channel

The Dollar index has broken the bullish channel downwards and is testing the 1st important short-term support at the 38% Fibonacci retracement at 97.30. Next support is at 96.50. If this level is lost, we should then expect a test of the lows at 95.20.

Blue lines - triangle pattern

The Dollar index has made a lower high and has reversed. Price came very close to the Kumo (cloud) resistance but could not break above it. The reversal should bring price towards 95.65 where the lower triangle boundary is found. Daily resistance is at 97.80. Next resistance at 98.60.

On a monthly basis, as long as price closes above 95.20, we remain inside the triangle. If we break the triangle downwards target is at 90. If it breaks upwards, target will be at 104-105.The material has been provided by InstaForex Company - www.instaforex.com