Technical analysis of USDX for April 19 2016

The Dollar index finally shows the deeper pullback I was expecting towards the important short-term support of 94.20. The bullish reversal scenario is valid as long as the price remains above 93.60. Soon we will know if bulls are strong enough to support the price.

The Dollar index got rejected at the tenkan-sen (red line indicator) and pulled back towards the Kumo (cloud) as expected. The correction was even deeper as the price pushed inside the cloud and tried to reach the 61.8% Fibonacci retracement. This a level where we could see a bullish reversal today.

The weekly candle at the start of the week is red and signals that the bounce was weak and more downside should be expected. However, we should be very cautious as this is still the start of the week and support around 93-93.50 is very important. A break above 95.20 will confirm a bullish reversal. A break above yesterday's highs at 94.83 will be an initial bullish sign.The material has been provided by InstaForex Company - www.instaforex.com