USDX technical analysis for December 15, 2015 Market Analysis Review

The US dollar index remains weak with new short-term lows ahead, but with the RSI providing a bullish divergence signal combined with the FOMC meeting scheduled for tomorrow. Dollar bears should be very cautious.

Black lines - downward sloping wedge

Blue line - price projection

The US dollar index is trading inside a downward sloping wedge at the 50% Fibonacci retracement of a rise from 93.80. This is important support. The RSI is also giving a bullish divergence signal as it does not reach lower lows like the price did. With the FOMC meeting taking place tomorrow and these signals, bears should be very cautious.

Although short-term trend is bearish, the medium- and long-term trend remains bullish as the weekly chart remains above the weekly Ichimoku indicators and above the weekly cloud. Weekly support levels are found at 96.50 and at 95.40. I believe that the US dollar index will reverse to the upside and we should expect the US dollar to rally. Important resistance that needs to be broken is seen at 98.

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