Technical analysis of USDX for June 8, 2016

The Dollar index remains in a bearish trend and is now challenging important short-term support levels like 93.50. If this pull back off 96 is not the main trend, the Dollar index will soon reverse upwards. If continued weakness remains, this will not be a good sign.

The Dollar index is trading below the Kumo and both the tenkan- and kijun-sen (red and yellow line indicators). Trend remains bearish as long as price is below the two indicators. Stochastic and RSI are giving bullish divergence signals in the 4 hour chart. This is a warning of caution for Dollar bears. Nothing more.

The weekly candle is breaking down below the weekly tenkan-sen and the Kumo (cloud). This is a bearish sign for the longer-term trend but we have to be patient and wait for the week to end before reaching any conclusions. If the 92 reversal level is an important low, price should soon start a bullish reversal and give a lower high around 93.50. A move lower will put the bullish scenario in danger.The material has been provided by InstaForex Company - www.instaforex.com