USDX technical analysis for March 9, 2016

Dollar bulls are stronger than I initially expected as the price held above the 50% retracement. The price remains under pressure for the US dollar index and trend remains bearish short-term. The bigger picture remains neutral as the price continues to move sideways.

The price is below the Kumo (cloud) and is bouncing off the 50% retracement. Resistance is seen at 97.60. Support at 96.88. If bulls do not break above the resistance, we could see another leg down towards the 61.8% Fibonacci retracement. A breakout above the cloud will open the way towards 98.50.

As shown in the weekly chart above, the price continues to trade inside the triangle pattern. A breakout above 98.50 will open the way towards 100 and the upper triangle boundary. Support is critical at 95.20 for the longer term although the level of 96 is also of similar importance.The material has been provided by InstaForex Company - www.instaforex.com