Technical analysis of USDX for July 10, 2017

The Dollar index remains in a bearish trend although for the last couple of sessions we could be making at least a short-term low. I believe the upside has more potential than looking for the bearish side.

The Dollar index has retraced 61.8% of the recent rise from 95.50 to 96.50. Price remains below the 4-hour Kumo. Trend remains bearish. However the recent low could be the start of a new sequence of higher highs and higher lows. Important short-term resistance is at 96.30-96.50. Breaking it will be the first important sign of a reversal.

Blue lines – bearish channel

The weekly chart remains bearish. Price is inside a bearish channel and below the weekly Kumo. However I believe we should expect a strong bounce towards 98.50-99. I believe we should bounce soon towards the lower Cloud boundary and the upper channel boundary.

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Source:: Technical analysis of USDX for July 10, 2017