Technical analysis of USDX for June 16, 2016

The US dollar index pulled back towards the short-term support levels of 94.20 and the 50% retracement. This is still considered a pullback inside a bigger upside move. This scenario will be canceled, if the price breaks below 93.35.

Red line - resistance

Green line - support

Although the index initially broke above the 4-hour Kumo (cloud), the red trend line resistance proved to be strong to be broken, and the price got rejected and re-entered the cloud. The price is above the green trend line support and at the 50% retracement of the latest rise. The 61.8% is a more important support level, so even a pullback towards that level will still not cancel my bullish medium-term view.

The weekly candle got rejected at the lower cloud boundary and this is not a good sign for bulls. However, we continue to trade above the weekly tenkan-sen (red line indicator). Last week's bullish hammer remains a bullish reversal sign. I still expect the price to move higher over the next few weeks as long as we trade above 93.35.The material has been provided by InstaForex Company - www.instaforex.com