30.05.201410:56 Forex Analysis & Reviews: #USDX Technical analysis for May 30, 2014

Long-term review

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The Dollar index has made a pull back that puts the short-term support to the test. Prices are in danger of breaking support at 80.40-.35 and this will push the index lower towards 80.20 where the ichimoku support is found.

Breaking below 80.20-80.10 will not be good for bulls. This could mean that more selling should be expected and price could push even below 80. Longs are better to exit if 80.35 is brokeneaks.

The daily chart shows how difficult it was for the index to break above the long-term resistance trend line that was found at 80.60. This trend line resistance that was once support has rejected the price yesterday and we may see a strong pull back that will bring price back to the Ichimoku cloud in the daily chart that is found at 79.85. So a dip below 80 is very possible. So bulls should be very cautious.

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