FX.co ★ Technical analysis of USDX for May 19, 2016

The Dollar index has reached my 95.20 target and resistance and has paused its rise. After the FOMC minutes announced yesterday, hopes for a June hike in US rates have pushed the Dollar higher.

The price is above the Kumo and with a recent cross of the kijun-sen (yellow indicator) by the tenkan-sen (red line indicator), we have a confirmation of this bullish signal as the prices continue to make higher highs and higher lows. Support is at 94.90-94.75. If broken, the cloud will be tested.

The weekly bullish reversal pattern was so strong that the price is heading directly to the upper cloud boundary with no significant pullback. The trend is bullish for the short term, but for the longer term the price remains trapped inside the sideways range. The stochastic oscillator implies that a new upward move has started, capable to push the index to new highs.