30.06.201609:14 Forex Analysis & Reviews: Technical analysis of USDX for June 30, 2016

Long-term review

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The Dollar index continues to trade inside the consolidation range and inside the pennant formation. The trend is neutral for the short term, but I expect an upward breakout towards 99 over the coming weeks.

Black lines - pennant formation

The Dollar index is trading above the Kumo on the 4 hour chart with the stochastic oversold and turning upwards. I expect some Dollar strength to be seen in the market soon. Support is at 95.60 and resistance at 96.30.

The weekly candle is getting weaker and is testing the lower cloud boundary support. This pullback is justified after the gap-up open on Monday, and I believe that only partially will the gap be filled, and the prices will reverse to the upside soon for the Dollar index.

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