Technical analysis of USDX for July 29, 2016

The Dollar index continues to slide lower mainly because of pressure in USDJPY. The Dollar index has showed false breakout signs and this is bearish for the short- and medium-term. I continue to believe that as long as price is below 96.70-97 we should expect a deeper correction towards 95.

The Dollar index is trading below the 4 hour Kumo and this is bearish. Price should at least reach the 38% Fibonacci retracement at 95.80 although I believe that even the 61.8% Fibonacci retracement is possible. Resistance is at 96.70. Support is at 95.80.

The weekly candle is an ugly bearish reversal candle rejected at the upper cloud boundary and breaking below a thin cloud. The weekly kijun- and tenkan-sen are to be tested next week. The current price formation gives more chances of a deep correction towards 95. The bearish view will be canceled if price manages to reverse higher above 97.The material has been provided by InstaForex Company - www.instaforex.com