FX.co ★ Technical analysis of USDX for April 29, 2016

The pressure on the Dollar index increased yesterday as we had expected as support levels were broken. The Dollar index remains in a bearish trend towards our 93 target area. Stochastics are oversold so bears should be cautious and use tight stops. The trend reversal to bullish is possible above 95.20.

Black lines - sideways channel (broken)

The Dollar index is trading just above our 93 target we mentioned yesterday after breaking support at 94. Stochastic is oversold but there is still no reversal signal yet. The short-term resistance is at 94. Support is at 93.

The weekly chart above is showing price testing the lower cloud boundary. This has not happened since September 2013 when price fell below the weekly cloud. Since August 2014, price has broken above the cloud and has never fallen back below since then. This will be an important trend signal, if 93 is broken on a weekly basis as in the Ichimoku terms trend would be changing to bearish with price breaking below the cloud.