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26.08.201315:58 Forex Analysis & Reviews: #USDX analysis for August 26, 2013

Long-term review

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The Dollar index continues to trade below the resistance trendline as it is shown in the chart below. The resistance area of 81.80-82 is very important for the mid-term trend. The short-term resistance is found at the previous highs of 81.65-75. Bulls will feel more confident in case of trend reversal, which is possible if these price levels are broken upwards.

The longer-term trend will change to upward again if prices manage to hold the 80.76 low and break above 82. The daily chart below shows that prices still remain below the downward sloping trendline and trend remains down. The sequence of lower levels and lower highs still holds and has not been interrupted.

Concluding, we remain bearish biased as long as prices don't break above 81.70-82 area. Within that range we will be neutral. If prices get rejected once again at 81.70 resistance, then we should expect a new low towards 80.50 to be reached.

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