16.10.201314:33 Forex Analysis & Reviews: #USDX Analysis for October 16, 2013

Long-term review

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The Dollar index continues its sideways corrective movement towards the blue upward sloping trendline. This support trendline is crucial for this wave count and the continuation of the upward momentum. The short-term support is found at 80.25-30. It will not be a good sign for this trendline to break downwards.

We remain bullish biased as long as prices trade above this trendline and above the wave 2 low near 79.85. Adding to our long positions will happen if a new high above 80.70 comes.

The daily chart has not changed much since last time. The upward move from the lows looks impulsive and the short-term trend is upward. The longer-term trend is still downward and we need to break above the 81.70 level to change. Concluding we remains bullish as long as prices stay above 79.85. Today buying near 80.35-40 could give profits near 80.60 with 80.25 as stop.

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