Technical analysis of USDX for May 20, 2016

The Dollar index continues to trade in an uptrend. However, there are signs that a short-term reversal is coming so Dollar bulls should not forget to take profits from this upward move.

Blue lines - bullish channel

The price is above the Kumo (cloud) support and inside the blue bullish channel. The stochastic and RSI are diverging but we still have no reversal confirmation. Support is at 95. The next support is at 94.30. Resistance is at yesterday's highs of 95.50.

The weekly channel remains very bullish after the bullish reversal off the 38% Fibonacci retracement. We may see a pullback for a day or two, but it is very possible that the overall trend has reversed to the upside again. We remain bullish on the Dollar as long as the price is above 92 for the long term.The material has been provided by InstaForex Company - www.instaforex.com