Technical analysis of USDX for July 11, 2016

As expected the US dollar index made an upward move above 96 strengthened by the better than expected NFP numbers. The technical view of the index favored the bullish side and that was what the market delivered.

Black line - resistance Trend line (broken)

The dollar index successfully broke and back tested the black trend line resistance and is now trying to break above the highs of 96.70 in order to continue towards 99-100. The trend is bullish for the short-term and medium-term. The short-term support is at 96. Resistance is at 96.70.

Last week's candle entered the weekly Kumo and closed also above the weekly kijun-sen (yellow line indicator). The trend is bullish and with higher highs and higher lows on a weekly basis we can say that the bullish scenario is being favored for a bigger bullish move to new highs. Critical support for this scenario

will remain valid is the 93 price level.

The material has been provided by InstaForex Company - www.instaforex.com