FX.co ★ USDX technical analysis for February 11, 2016

The US dollar index remains in a short-term bearish trend and inside the downward sloping bearish channel. I expect this downward move to end soon so dollar bears should be very cautious and lower their protective stops as I see some strength coming over the next couple of weeks and a reversal of the current bearish sentiment.

Blue lines - bearish channel

Short-term resistance is found at 96.15-96.70. The price is below both the tenkan- and kijun-sen indicators and below the Ichimoku cloud in the 4-hour chart. A trend is bearish. Only a breakout above 96.70 could confirm a short-term bullish reversal.

In the weekly chart shown above, we can see that the price has entered the weekly Ichimoku cloud breaking the kijun-sen (yellow line indicator). This is a bearish sign as the stochastic oscillator and the RSI are turning lower. There is danger that the downward move unfolds even lower towards the lower cloud boundary. The top of the weekly cloud boundary is important resistance and should serve as stop for short positions.