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16.11.2016 10:44 AM
Technical analysis of USDX for November 16, 2016

The Dollar index remains very strong above the 100 level reaching the previous highs near 100.50. There are several warning signs of a bearish divergence up here but as long as price is above 99.90 bulls are in control.

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Blue lines - wedge pattern

Red lines - trading range boundaries

The Dollar index has broken above the trading range boundaries and is testing previous highs. Price is forming a wedge pattern that if broken we should expect a pull back at least towards 98.50. Resistance is at 100.50 and above that is uncharted area. The Oscillators are overbought for some time now, diverging and I believe it is dangerous opening new long Dollar positions now.

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Blue line -resistance

Red lines - trading range

Green line - important support

On a weekly basis price is testing previous highs while oscillators are diverging at overbought levels. The long-term bullish trend is safe as long as price is above the green trend line support and the Ichimoku cloud at 96.50. A pull back towards 98 is justified from current levels if not a deeper bearish reversal.

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