The Dollar index remains in a bullish trend where it makes higher highs and higher lows. However, as we mentioned in previous analysis, we should expect this downward pull back to reach the Ichimoku cloud near 80 support level again.
The Dollar index is above the Ichimoku cloud and above the short-term red trendline support. I believe that both the cloud and the trend line will provide enough support for the index to stage another upward reversal towards 80.40. Short-term support is found at 80.20 and at 80. Short-term resistance is found at 80.40 and 80.70.
The fact that the daily chart has broken above the Ichimoku cloud is a bullish sign. The Dollar index could pull back towards 80, but we believe it has reversed its longer-term trend upwards and we should expect during the following weeks to see a move towards 81-83.
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Performed by Alexandros Yfantis, Analytical expert InstaForex Group © 2007-2014 |
#USDX Technical analysis for May 27, 2014
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