Technical analysis of USDX for July 24, 2017

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The Dollar index remains in a bearish trend. There are bullish divergence signals but no trend reversal confirmation yet even in the 4-hour time frame. However bears need to be very cautious as the downward move has reached extension targets.

Blue lines – bearish channel

The Dollar index is trading below both the tenkan- and kijun-sen indicators. Trend is clearly bearish as price continues to make lower lows and lower highs. Short-term resistance is at 94.50. Support is at 93.50.

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Blue lines – bearish channel

The downward move that started in early 2017 has now reached the 161.8% extension of the first leg down from 103.70 to 99 in December 2016. A bounce from current levels or from 93 is very possible and bears should be very careful and protect their positions with trailing stops.

The material has been provided by InstaForex Company – www.instaforex.com

Source:: Technical analysis of USDX for July 24, 2017

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