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Technical analysis of USDX for October 5, 2016

The Dollar index has managed to break above short-term resistance levels and has reached the 96.50 level only to get rejected once again. Important weekly resistance is found at 96.50, so we expect to find it difficult for this level to be broken upwards with only one try.

analytics57f4ac4fb8b31.jpg

Red line - upper triangle boundary

Blue line - lower triangle boundary

Black line - horizontal resistance

The Dollar index has broken above the red trend line resistance and is now back testing it. The horizontal black trend line is important and only a daily close above it will be a confirmed bullish signal. Trend remains bullish for the short-term as prices make higher highs and higher lows.

analytics57f4acaa91870.jpg

Green line - important trend line support

The weekly candle holds above the important green trend line support but also below the weekly Ichimoku cloud. Price is trading alongside the upward sloping green trend line and as long as it does, bulls will be in control. However another rejection at 96.50 will be a bearish signal.

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