06.05.201410:56 Forex Analysis & Reviews: #USDX technical analysis for May 6, 2014

Long-term review

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The Dollar index is being put under heavy selling pressure. With its major component of EURUSD making new higher highs towards 1.40, the Dollar index is being sold heavily and is testing the 79.20 lows. Support is most probably going to break and we should expect the dollar index to move below 79 soon.

The trend remains downward. Price is below the short-term trend line and the Ichimoku cloud. Price has broken the recent low at 79.45 and is going to challenge 79.20-79. I feel that a low below 79 is very possible. The next big support level is at 78.

The daily chart remains in favor of the bears. Price is below the Ichimoku cloud and the trend line resistance. The double bottom at 79.30-79.20 is being broken and we should anticipate a move towards 78 at least. Things are not very good for bulls currently. A good sign will be if price reverses and breaks above 80. Until then, we remain bearish.

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