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FX.co ★ Technical analysis of USDX for May 6, 2016

Technical analysis of USDX for May 6, 2016

The Dollar index continued rising yesterday despite worse than expected jobless figures. The dollar reached an important short-term resistance. Taking into account that we expect NFP to be announced later today, I prefer to close dollar longs and be neutral.

Technical analysis of USDX for May 6, 2016

Black line - resistnace

The Dollar index reached the Kumo resistance and nearly the 61.8% Fibonacci retracement of the decline from 95.20. The short-term trend is bullish but a reversal is possible if price breaks below 93.50.

Technical analysis of USDX for May 6, 2016

On the daily chart, price broke above the tenkan- and kijun-sen indicators. We could see a back test before more upside as we are overbought in the short-term time frames. Support is at 93.50-93.30. The upside potential for the Dollar index is at 95.80.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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