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25.07.2016 09:01 AM
Technical analysis of USDX for July 25, 2016

The Dollar index remains in a bullish short-term trend with higher highs and higher lows and could soon confirm the breakout above 96.70 by breaking above 97.70 and confirming the bullish trend towards new highs.

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Blue lines - bullish short-term channel

Red lines - long-term trading range

The Dollar index is trading inside the bullish blue channel making higher highs and higher lows above the 4-hour Kumo(cloud). As I mentioned last week, for the breakout above 96.70 to be confirmed, we should see a re-test and a follow-through upside move. This is exactly what is happening, and the Dollar confirms the breakout. Our next target is 97.70. If broken, we should expect more power to the upside.

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The weekly candle is testing the upper cloud boundary at 97.50-97.70. The trend is bullish. There is no divergence signal from the oscillators. The price is making higher highs and higher lows. A weekly close above the Kumo will be a very bullish signal for the index. Weekly critical support is now at 96.50.
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