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.


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.


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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