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19.08.201312:43 Forex Analysis & Reviews: #USDX analysis for August 19, 2013

Long-term review

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The Dollar Index continues to trade below the short-term resistance levels at 81.90-82. Prices although have not made a new lower low below 80.86 and although the correction from 81.40 seems complete, there is still no upward strength to push prices above resistance.

We still favor a bullish reversal in the Dollar Index but the bullish signs are still not there or are too few. We need more evidence to support our bullish scenario. Otherwise we are going to see new lows as prices will not stay for long under the resistance.

The daily chart shows in a clearer way that prices continue pulling back at resistance of the blue downward sloping trend line. Breaking above this trend line will give bulls more hopes for the trend reversal we are expecting. First bulls will need to break above 81.40 and after that above 82. Once these resistances are broken, a great step towards trend reversal will be made. Additionaly prices should stay above 81 and not break below it.

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