FX.co ★ Technical analysis of USDX for May 24, 2016

The Dollar index is showing signs of a short-term top but sellers are yet not strong enough to push price below 95. Only then we will have a reversal confirmation.

Blue lines -bullish channel

Price has broken out of the bullish channel and a pull back is now expected. Price is above the Kumo (cloud) and this implies that trend remains bullish for the medium-term despite any short-term weakness. Next support is at 94.30. Resistance is at 95.50 and if broken we should expect the index to move towards 96-96.20.

The weekly chart remains bullish as long as price is above 92 and the 38% Fibonacci retracement. We might see a short-term weakness pullback towards 94.30 where the lower boundary of the Kumo (cloud) is found. Concluding, short-term we are neutral to bearish while in the medium- and long-term bulls are favored as price has made an impressive reversal off the 38% Fibonacci retracement implying new highs.