FX.co ★ #USDX technical analysis for April 30, 2015

The Head and Shoulders pattern is working out as expected once we have broken below 96.20. The Dollar index remains in the down trend with a target at 93. I warned bulls what could happen if we broke the neckline.

Green line= H&S neckline

The dollar index is accelerating lower towards its target area around 93. The price is below the Ichimoku cloud and below the tenkan- and kijun-sen indicators. The short-term resistance is found at 95.50 and at 96. If bulls manage to push the index back above the neckline, this bearish trend will be challenged.

Green line= trend line support

The Dollar index gave its first warning once it closed below the tenkan-sen. Support is at the kijun-sen at 93.70 now . I believe this is the minimum target level but I cannot rule out a deeper correction towards the green trend line support. Bears have the upper hand now and I believe once this correction is over near 93, a new up trend will start. Until then, trend remains bearish.