Technical analysis of USDX for June 14, 2016

The US dollar index remains supported despite finding strong resistance at 94.70. The price is consolidating for the next upward move. The short-term trend is bullish. On a weekly basis, we have a very bullish hammer reversal candle that is expected to push price towards 98 at least.

The dollar index is right inside the 4 hour Kumo (cloud) resistance area. A break above it will confirm a short-term bullish trend and strengthen it. Support is at 94.35 and at 94.05. Resistance is at 94.70 and at 94.90. I believe the uptrend will resume shortly and I remain bullish as long as price is above 93.35.

The weekly chart gave us a bullish weekly hammer. This is a bullish reversal sign. However, the price is stuck below the weekly Kumo (cloud) resistance so bulls will need soon to re-enter the cloud and break above the 95.90 weekly resistance and previous short-term high in order to confirm the bullish trend on a medium-term basis.The material has been provided by InstaForex Company - www.instaforex.com