Technical analysis of USDX for August 7, 2017

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The Dollar index bounced strongly on Friday after the announcement of the jobs report and specifically of the better than expected NFP. Short-term trend has changed to bullish as the price is now testing important intermediate term trend.

Magenda line – resistance

The Dollar index has broken above the resistance trend line and is making higher highs and higher lows. Price is now testing the important intermediate-term trend resistance level at 93.80. A pull back towards 93.20 is justified as this was the break out level. However, I believe that the time for a strong Dollar bounce has arrived. The weekly candle also could be confirming this view.

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We have been saying for the past few sessions that the Dollar index is oversold, diverging, and inside the long-term support area of 92-93. Last week’s candle with the long tail and bullish close near the highs is a bullish reversal hammer pattern. If this week is positive and gives us a higher close, we will confirm the trend reversal that could push price towards even 98. I remain bullish the Dollar.The material has been provided by InstaForex Company – www.instaforex.com

Source:: Technical analysis of USDX for August 7, 2017

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