FX.co ★ Technical analysis of USDX for July 28, 2016

The Dollar index had a volatile session yesterday due to the FOMC last night. Yesterday price got rejected once again at the resistance of 97.60; it reversed and broke below 96.70 the breakout level confirming the false breakout. This is a bearish signal that will put pressure on the Dollar for at least a week.

Blue line - trend line support

Red lines - long-term trading range

The Dollar index is testing the 4-hour Kumo support and the trend line support. Breaking below 96.50 will be a bearish sign. In this case it will open the way for a deeper correction towards 95, at least. Resistance is at 97. We have now a confirmed false breakout and reversal. This is bearish.

The weekly candle got rejected at the upper cloud boundary. Price is now testing the lower cloud boundary and could very easily push lower towards the weekly kijun-sen. This support is just above 95. So, the weakness that will push the dollar index towards 95 is expected as long as the price is below 97.