Technical analysis of USDX for June 9, 2016

The US dollar index is at important support levels and should start a bullish reversal today or tomorrow. The dollar bears should protect their positions and use tight stops. The short-term trend at least is expected to change to bullish. Continued weakness today and tomorrow will be a very bearish sign for the longer-term trend.

RSI and stochastic oscillator are giving bullish divergence signals in the 4 hour chart. Price has reached the 61.8% Fibonacci retracement. Price is below the tenkan- and kijun-sen resistance levels. The short-term resistance is at 93.65 while support is at 93.45.

The daily stochastic is oversold. Price was rejected at the daily Kumo and was broken below the cloud body. The signs are not very promising for the dollar bulls. The last stand for the dollar bulls is the 61.8% Fibonacci retracement where we are at the moment.The material has been provided by InstaForex Company - www.instaforex.com