Technical analysis of USDX for June 1, 2016

The Dollar index remains in a bullish trend and is trading near its highs. There is still no trend reversal signal yet however Dollar bulls need to be very cautious.

Blue lines - bullish channel

The Dollar index continues to trade inside the bullish channel and above the Kumo (cloud). Trend is bullish. Short-term support is at 95.68 and at 95.40. Breaking below these levels will open the way for 95 which is important support for the bullish trend. Resistance is found at 96 and at 96.65.

The weekly candle is testing the weekly kijun-sen (yellow line indicator) Price is still inside the Kumo(cloud) and this is a sign to be cautious for both bulls and bears. I can see a short-term higher high but overall a corrective pull back is justified and overdue.The material has been provided by InstaForex Company - www.instaforex.com