Trade Analysis & Reviews: 03.08.2017 - Technical analysis of USDX...

03.08.2017 09:50 AM

Technical analysis of USDX for August 3, 2017

The Dollar index made a new lower low yesterday. The trend remains bearish. There are important bullish divergence signals by the RSI. This is a warning for Dollar bears.

The Dollar index is showing divergence signs. I believe the reversal is very close. Resistance is at 93.30. Next resistance is at 94. There is a bullish candlestick reversal formation on the 4-hour chart as the candle that provided the new low turned upwards and closed positive with a long tail.

Green area - support

The Dollar index as we mentioned in previous posts, is trading inside the long-term support area of 92-93. Combined with the bullish divergence signs in the daily and 4-hour chart, we should expect a strong bounce at least towards 94.50 if not higher towards the Daily cloud resistance at 96.

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*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Technical analysis