03.01.201412:55 Forex Analysis & Reviews: #USDX analysis for January 3, 2014

Long-term review

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

The Dollar index has made a small upward breakout. Short term resistance at 80.40 was broken yesterday. However the big sideways triangle needs to be corrected in order to capture the sideways move better. So prices still remain inside the big sideways triangle despite breaking above the short term resistance. Prices have now short term resistance at 80.90 and short term support at 79.95.

The price pattern from 81.50 is still corrective. We feel that the Dollar index has more chances of making a new upward move than new lows. The new shaped triangle as shown above, shows very well where the resistance levels are. Prices are now testing the upper boundaries. This is a good place to go short with 81 as stop. Bulls should wait for a breakout to go long again.

The daily chart of the Dollar index shows a promising breakout of the green downward sloping trend line resistance, however it needs to break above the blue MA at 80.70 and then above the red resistance area where it was previously rejected. Support that should hold for bulls is the 79.70 lows. Longer term target is 82.50. Concluding we remain neutral, however we favor long positions near 80 and short positions near 80.60 with 80.95 stop.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.