02.04.201410:26 Forex Analysis & Reviews: #USDX technical analysis for April 2, 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 continues to trade sideways between 80 and 80.40. If support at 80 fails, then we should expect a downward push in the index to bring it near 79.70-79.80. If however the index breaks above 80.40, we should expect a move towards 80.70 at first.

Short-term trend is neutral. The index has no clear direction but a small downward bias after being rejected at 80.40. Support at 80-79.85 is strong from the Ichimoku cloud and the 38% Fibonacci retracement. Longer-term picture remains bullish as long as price stays above 79.20.

The sideways consolidation as shown in the daily chart above and the rejection at the 80.40 previous high makes be believe that there are increased chances of a downward move towards 79.80 or even 79.70. Long-term resistance at 80.40 is important and if broken could open the way for a new upward move towards 81.40.

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.