U.S dollar index long-term technical analysis

Last month outbreak of coronavirus in China trigger a major pullback in the global market. Initially, the index moves higher but retraced at the end of the month after the U.S GDP number released. This month, the index attempting to continue its upward movement and currently challenging previous month high.

A close above the previous month high will confirm the medium-long-term bounce.

New Month

Monthly chart

A breakout of the channel on the monthly chart has happened but U.S dollar index bull continue put the pressure and currently the index has returned inside the channel range. If the index could close inside the channel range by the end of month then we will expect the bullish trend will continue.

Weekly chart

Similar to the outlook on the monthly chart, the index recover from the breakout below the channel. We could see the index immediately return inside the channel range after a 1-week breakout. At the current time, we have strong bullish pressure surpassing the previous week’s high. A close above the previous day high might trigger further upside in the index toward 99.40.

Daily chart

On the daily chart, the index closed near 98.25 resistance and currently attempting to continue further upside. As long as there is no major bearish reversal then the index will continue its bullish trend.

Trade plan (For U.S dollar pair)

U.S dollar index turned bullish after the breakout and return inside the channel range on Monthly and weekly chart. This month is a vital month for the index. If it could close inside the channel range then we could expect the continuation of the long-term bullish trend.