Technical analysis of USDX for July 14, 2016

The inability for the US dollar index to break above the double top has brought more weakness as the price is stalling and we may see an even deeper correction below 95.50. The short-term trend is neutral as price consolidates near its highs.

Blue line - trend line support (broken)

The dollar index broke below the short-term trend line support and now it is testing the 4-hour Kumo (cloud). Support is at 96.10-96 and if this level fails to hold we should expect a pullback towards 95.30 where the 38% Fibonacci retracement is found.

As long as the dollar index is below 96.70 there will be a danger of a deeper pullback below 96. The weekly candle is turning dangerously below the weekly Kumo (cloud) and this is not a good sign. The weekly kijun-sen is at 95.87 so a close below it will open the way for a move towards 94.90. So we have to wait for the weekly closes.The material has been provided by InstaForex Company - www.instaforex.com