19.09.201608:58 Forex Analysis & Reviews: Technical analysis of USDX for September 19, 2016

Last week, the Dollar index broke above the trend line resistance and the short-term trading range. Short-term resistance level of 95.70 was broken and gave a short-term bullish signal. However price remains below critical resistance of 96.50-97.10.

Blue line - long-term supportGreen line - short-term support

Black line - short-term resistance (broken)

The Dollar index was holding above the long-term support trend line at 94.60-94.80 area and produced a bullish reversal that broke above the black trend line resistance. Holding above the green trend line support is important for the short-term bullish trend. Support is at 95.30. Resistance is at 96.10 for the short term and 96.60-97.10 for the long term.

The weekly candle remains below the weekly cloud where resistance is found at 96.60-97.10. With lots of central banks meetings this week, it is very important to keep focus on the longer-term important price levels like 97.10 above.94.70 below as there will be an increase in volatility and traders could be misled. Patience and caution is advised specially this week. A rejection at the 96.60-97.10 area will be a reversal signal that will increase the chances of breaking support at 94.70 and pushing the index lower towards 92.