Technical analysis of USDX for July 19, 2016

The Dollar index remains below its important resistance of 96.70 and continues to move mainly sideways. The trend is neutral as the price is trading near its highs. Bulls need to be very cautious as a rejection at current levels will give way to a deep pullback.

Blue lines - trading range

The Dollar index is trapped inside a trading range between 96.70 and 95.50. Currently trading near the upper boundary of the range, bulls need to be very cautious in case we see a rejection as this could result in a pullback at least towards 95.50.

The weekly chart shows us clearly the battle between bulls and bears at the edge of the lower cloud boundary. The price is still above the weekly kijun-sen (yellow line indicator), but a weekly close below the Kumo will be a bearish sign. On the other hand, a break above 96.70 will be a bullish sign that could push the index towards 97.70 at least.The material has been provided by InstaForex Company - www.instaforex.com