Technical analysis of USDX for June 29, 2016

The Dollar index continues to trade sideways in a pennant formation. The price is expected to break to the upside as the boundaries of the pennant contract. Above 96.50 we have a confirmed breakout.

Red lines - pennant formation

The Dollar index continues to trade above the Kumo while it moves mainly sideways digesting the spike of the referendum result. Support is at 95.80 and next at 95. Resistance is at 96.50 and next at 96.75 where the high of the spike is found.

The weekly candle remains above the kijun-sen and inside the Ichimoku cloud. A new high above 96.75 will confirm the bullish trend we are in and will probably push the index towards 99.50-99.75. Intermediate resistance is found at 97.70 where the upper cloud boundary is found.The material has been provided by InstaForex Company - www.instaforex.com