18.03.201404:53 Forex Analysis & Reviews: Technical analysis of USDX for March 18, 2014

Long-term review

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The US dollar index is trading in a weak trend. The pair is in a consolidation phase with strong support between 79.27 and 79.0. The RSI gives positive divergence indications in the hourly chart. A move below the 79 mark leads to more dramatic fall in coming days. On the upside, a move above the 79.70-79.87 area will attract buying bids. If the price crosses the 79.87, a buy call will generate towards the 80.12, 80.40, and 80.75 levels. In the daily chart, RSI is at a buying level. If any dramatic fall happens, it leads to oversold and a pullback will be expected in the near term. On the downside, if the price breaks the 79 mark, it will drift to 78.90 and 78.6 immediately. Buying is the best strategy in the near term.

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