21.11.201609:56 Forex Analysis & Reviews: Technical analysis of USDX for November 21, 2016

Long-term review

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The Dollar index made a higher high on Friday at 101.47. As I said in my previous analysis, Dollar bulls need to be very cautious at current levels and raise their protective stops as a pullback will soon start. Price remains inside the bullish channel.

Black lines - bullish channel

Red lines - trading range

Despite having broken above the long-term trading range and making a new multi year high, the Dollar index is vulnerable and in danger of a deep pullback. The 96-96.50 remains the most important long-term support area. Short-term support is at 100.80 and next at 99.

Green line - important long-term support

Red lines - expanding triangle pattern

The Dollar index is right at the top of the expanding triangle boundary. This is a resistance area. A rejection here will push price back down towards 98.25-97.25 support levels. Critical support levels for the longer-term trend are at the weekly cloud at 96.30 where we also find the green trend line support. As long as price is above the green trend line support bulls will be favored in the longer term. Dollar bears on the other hand want to see price reverse immediately and eventually break below 96.

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