17.11.201610:32 Forex Analysis & Reviews: Technical analysis of USDX for November 17, 2016

Long-term review

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

The Dollar index has topped or it is at its final stages of the rise from 91.90. Price has reached the highs at 100.50 and has marginally broken to new highs. Oscillators are warning for a reversal. This is not the time to buy the US dollar. This is the time for bulls to raise their stops and protect longs.

Red lines - trading range

The Dollar index has broken out above the trading range. A pullback below 99.90 will confirm whether this breakout was a false one. This could lead to a pullback at least towards 98. Oscillators are giving warning and bulls need to be very cautious.

Blue line - previous highs

Red lines - trading range

Green line - important trend line support

The weekly breakout is an important bullish sign but I believe the fuel left for a continuation are gone. There is no fuel left and we should prepare for a Dollar index pullback if not full-scale reversal. The Stochastic oscillator is diverging at overbought levels. Short-term support is at 99.05 and next at 98. Resistance remains at 100.50.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.