Technical analysis of USDX for June 10, 2016

As we had expected the US dollar index reversed upwards. The weakness in the dollar did not continue so the dollar bulls still hope that a new uptrend have started. The reversal occurred right at the most important support and at the last minute.

The dollar index reversed from the 61.8% Fibonacci as we had expected and now it is challenging the Kumo (cloud) resistance on the 4 hour chart. The price is above both the tenkan- and kijun-sen indicators. Support is at yesterday's lows at 93.40. Resistance is at 94.45 and 94.80.

The weekly candle is reversing and price is entering the Ichimoku cloud once again. This is a reversal and bullish sign for the index. I remain bullish since yesterday when I first signaled that a reversal would occur very soon. If the long-term uptrend resumes, the dollar index should at least break above the recent high at 95.95 and eventually break above the weekly Kumo at 97.50.The material has been provided by InstaForex Company - www.instaforex.com