Technical analysis of USDX for July 20, 2016

The US dollar index broke to the upside. Resistance at 96.70 was broken yesterday and the price is in a short-term bullish trend after exiting the sideways consolidation and trading range.

Blue lines - trading range

Red lines - bullish channel

The dollar index is trading above the 4 hour Kumo confirming a bullish trend. The price broke above the trading range and the triple top at 96.70. The trend is again bullish. The price reached the upper boundary of the long-term bullish channel. Resistance at 97.13 was broken to the upside. For this bullish signal to be strong we need a weekly close above this area.

The weekly candle is trying to reach our first target of 97.70 at the upper cloud boundary. The price remains above the weekly kijun-sen (yellow line indicator) and inside the cloud. A break above the cloud will be a bullish signal that will push the index to new highs. I remain bullish on the index.The material has been provided by InstaForex Company - www.instaforex.com