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04.11.2016 09:55 AM
Technical analysis of USDX for November 4, 2016

The Dollar index bounced higher but not as strong as I expected. Price remains in a bearish trend which could change today after the US NFP report.

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Black lines - bearish channel

The Dollar index is trying to break above the short-term Tenkan-Sen resistance (red line indicator). The price is inside the bearish channel. Both oscillators are giving bullish divergence signals. This is a warning for Dollar bears. The NFP today could provide a good excuse to break out above the bearish channel.

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The weekly chart remains bearish moving towards our back test target of 96.50. However, if the NFP numbers announced are positive, we should expect a bounce. Overall, I believe the dollar index is facing an important high and a new down trend has started. Bounces should be seen as opportunities to sell.
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