USDX technical analysis for December 16, 2015 Market Analysis Review

The US dollar index has reversed its short-term bearish trend generating a short-term bullish signal. Important support is seen at 97. Dollar bulls are in control of both short- and long-term trends again, but with the FOMC announcement about the long-expected rate rise, traders should be very cautious.

Black lines - wedge (broken)

The US dollar index turned upwards as it broke out the downward sloping wedge as we had expected. The bullish divergence in the RSI worked well for our bullish signal. Short-term resistance is seen at 98.30 and next at 99.

The weekly chart remains supported at the 50% retracement and technically the downward correction can be over. The downward sloping stochastic is the only matter of concern. So, important support is found at 97 and next at 96.50. Breaking below these levels will open the way to the weekly Ichimoku cloud at 95.25.The material has been provided by InstaForex Company - www.instaforex.com

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