Technical analysis of USDX for April 18, 2016

The Dollar index has made a very shallow short-term pullback towards 94.50 and is now moving back up to test the recent highs and confirm the bullish reversal on the daily and weekly time frames.

Short-term resistance is at 95 while short-term support at 94.50 where the latest low was made and where the 38% Fibo is found. I was expecting a deeper correction for the Dollar index but this could already be it. A break above 95 will confirm the pullback is over. The price is above the Ichimoku cloud so the downside is currently limited to testing the cloud support at 94.40.

On a weekly basis, the price is still trapped inside the Kumo (cloud) and only a break above it at 95.20 could confirm a bullish reversal. The stochastic oscillator is oversold so we have another reason to expect a bigger bounce in the Dollar index. At the current levels I prefer to be either bullish or at least neutral (certainly not bearish) on the Dollar index. The material has been provided by InstaForex Company - www.instaforex.com