13.02.201511:32 Forex Analysis & Reviews: #USDX technical analysis for February 13, 2015

The Dollar index got rejected at the resistance area yesterday and is pulling back down towards the support at 93.50. The dollar index remains inside a trading range. Therefore, the trend is neutral. However, the longer-term trend remains bullish with 100 as a possible target if we break above 96.

Green line = resistance

Blue line = support

The dollar index is trading sideways between the important support and resistance levels as shown on the 4 hour chart above. The trend is neutral as the dollar index trades around the Ichimoku cloud. Bulls need to break above 95.30 and bears need to break below 93.40. Short-term traders should better wait for a signal before trading or open positions in favor of the trading range. In other words, opening longs near support and short positions near resistance with a stop reverse strategy.

On the daily chart the dollar index has broken below the tenkan-sen and unless we close above it today, we should expect a push lower towards the kijun-sen (yellow line). The longer-term trend remains bullish.