FX.co ★ Technical analysis of USDX for May 26, 2016

The Dollar index has finally shows some short-term reversal signs. The first leg up from 92 is over and a correction has started. Minimum target of this pullback is the 94.25 level.

The Dollar index has broken below the bullish channel and a corrective phase has started. Price is now testing the Ichimoku cloud but I believe that eventually it will break below it. The first target of the correction is at 94.25 where the 38% Fibonacci retracement is found.

On the daily chart as shown above price is turning lower after being rejected by the Ichimoku cloud. Short-term support is at 94.95 and next at 93.77-94.25 area. Stochastic oscillator is overbought and turning lower. Breaking below 80 will confirm bearish reversal for the short-term trend.