29.04.201410:55 Forex Analysis & Reviews: #USDX Technical analysis for April 29, 2014

Long-term review

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The Dollar index tried yesterday to make a move back inside the Ichimoku cloud but got rejected once again. The Dollar remains weak. In the short-term chart shown below the Dollar index is taking a negative turn downwards as the slope from neutral is turning back down.

The Dollar index is in downtrend. I expect 79.20 to be challenged soon. I think it is very possible to see a new lower low in the index towards 79 or even below 79 over within the coming weeks. Shot-term support is found at 79.30. Short-term resistance is found at 79.85.

Longer-term trend remains down. Price is still below the blue downward sloping trend line and below the Ichimoku cloud. I think we are going to see a new low soon so I prefer short positions with the 80.60 stop and 79 or 78.80 as the first targets. There are no bullish signs of a trend reversal yet, that is why we remain short-biased.

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