Technical analysis of USDX for September 11, 2017

The Dollar index started a bounce on Friday. This is a short-term bounce although we should soon expect a strong rally in the Dollar as the weekly chart is oversold, diverging and a strong bounce is hugely justified and expected. Dollar bears should be VERY cautious.

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The Dollar index is making lower lows and lower highs. Trend remains bearish although there are some signs in the short-term for a possible bigger reversal. Key resistance level to watch out for is at 91.90 and most importantly at 92.50. Support is at 91 and next at 90.20.

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Black lines - expanded triangle pattern

The downward move in the Dollar index is overextended, oversold, diverging on a weekly basis. A strong bounce is justified. We might see below 91 first and touch the lower triangle side, but overall Dollar bears need to be very cautious. A dollar bounce is expected soon....and it will be very strong.

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