USDX technical analysis for March 4, 2016

The Dollar index has reversed as expected and that is why I was warning bulls yesterday. Price has broken out of the short-term bullish channel and has started a new downward move.

Blue lines - bullish channel

The Dollar index has reversed from the 98.50 level and has broken the upward sloping blue channel. Price is now testing the Ichimoku cloud support but I believe eventually it will push lower. Short-term support is at 97.40. Resistance is at 98.50. We could see a bounce after the Non-Farm Payrolls today but I do not expect price to make a new higher high.

No matter what the short-term move will be, I expect the Dollar index to move as part of wave E of a triangle lower towards 96-95 in order to complete a bigger sideways formation. Important resistance is at 98.80-99. Support is at 95.The material has been provided by InstaForex Company - www.instaforex.com