Technical analysis of USDX for December 13, 2017

The Dollar index is making new highs. Market participants discount a rate hike and more positive news regarding the Dollar before tonight's FOMC. However traders must be cautious as price is rising in an upward sloping wedge pattern.

Black lines - upward sloping wedge pattern

Red rectangle - support

Black line - target if support fails.

The Dollar index is in a bullish trend. Price is making higher highs and higher lows. Support is at 93.70-93.80. If this level is broken, I expect price to fall towards the cloud support and the 93.30 level.

Price has reached the weekly kijun-sen (yellow line indicator). This is very important resistance. Price has started the bounce off the 61.8% Fibonacci retracement at 92.50 which was our target. We can see a pull back from current levels but overall as long as we are above 93-92.50 I expect price to move towards 96-97.The material has been provided by InstaForex Company - www.instaforex.com