Technical analysis of USDX for June 3, 2016

The Dollar index is trading sideways near its highs inside a trading range of 96-95. With Non-Farm Payrolls announced today, I expect the index to break out of this trading range.

Blue lines - bullish channel

The Dollar index has broken out and below of the bullish channel. The price reached cloud support and bounced back up to re-test the channel but the lower channel boundary is acting as resistance now and has stopped the rise of the index. Whatever the NFP number comes out, I believe it is more probable to see prices fall towards at least the 38% Fibonacci retracement.

The weelky chart remains bullish but with the stochastic in the neutral area and the price hitting the kijun-sen (yellow line indicator) resistance, it is clear that a pullback is needed before bulls pick up some strength and try to push the index higher. So a pause to the uptrend is expected.The material has been provided by InstaForex Company - www.instaforex.com