Technical analysis of USDX for May 6, 2016

The Dollar index continued rising yesterday despite worse than expected jobless figures. The dollar reached an important short-term resistance. Taking into account that we expect NFP to be announced later today, I prefer to close dollar longs and be neutral.

Black line - resistnace

The Dollar index reached the Kumo resistance and nearly the 61.8% Fibonacci retracement of the decline from 95.20. The short-term trend is bullish but a reversal is possible if price breaks below 93.50.

On the daily chart, price broke above the tenkan- and kijun-sen indicators. We could see a back test before more upside as we are overbought in the short-term time frames. Support is at 93.50-93.30. The upside potential for the Dollar index is at 95.80.The material has been provided by InstaForex Company - www.instaforex.com