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USDX technical analysis for June 5, 2015

The US Dollar Index has reversed upwards from the 61.8% retracement as expected. Yesterday's lows are expected to be tested. An apticipated upward bounce came, but it is weaker than we had expected. I prefer to stay neutral and change to bullish once we break out above resistance of 95.85 .


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The US Dollar Index not only bounced off the 61.8% retracement, but also broke out above the downward sloping blue trend-line resistance. We could see a move higher towards the important resistance at 96.60 where the lower cloud boundary is found. Support at yesterday's lows is very important as a breakout below it could mean that the bigger picture correction is not over and 93.10 will be in danger.


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The weekly chart is showing signs of reversal. Unless bulls manage to push the Index towards 96.50 today, the weekly candle will give a sell reversal signal and will put 93.10 in danger. Currently, I remain neutral. My longer-term view is bullish. This does not mean we cannot make a deeper correction over the coming weeks towards 92.50. So patience is advised and no hurry moves.



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