Technical analysis of USDX for November 29, 2016

The Dollar index managed yesterday to recover most of its losses and continues to trade near the higher end of yesterday's range. This is a bullish sign that could imply a new high towards 102.50 could be expected as long as price is above 100.70.

A short-term trend is neutral as price is mainly moving sideways between 102-100.70. Price could push towards 102.50 in order to reach the blue trend line resistance. At the same time if the RSI does not provide a confirmation, we should expect a strong bearish reversal as this new high in the index will confirm a three-drive reversal pattern.

The weekly candle remains supportive of the bullish trend near the important long-term resistance at 102 where the 61.8% Fibonacci retracement is found. Short-term support is at 101.10. Short-term resistance is at 101.60.The material has been provided by InstaForex Company - www.instaforex.com

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