01.08.201411:45 Forex Analysis & Reviews: #USDX Technical analysis for August 1, 2014

Long-term review

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The Dollar index remains in an uptrend that started at 79.75. The price is above the Ichimoku cloud in the 4 hour chart as shown below and the price is making higher highs and higher lows. Short-term support is found at 81.40. If broken, it can fall towards 81.25. Short-term resistance is at 81.60. Breaking above it will push the index closer to our 81.75 target.

In the daily chart as shown below, we clearly see that the trend remains bullish and the price is still inside the upward sloping channel. The price is also above the Ichimoku cloud and getting closer to our target of 81.75. A pullback towards 81 cannot be ruled out. This would be a buy opportunity.

The upward move that started at 79.75 is not complete yet. Even if we see a strong pullback towards 81, we should see after that a new higher high maybe towards 82.

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