20.05.201410:52 Forex Analysis & Reviews: #USDX Technical analysis for May 20, 2014

Long-term review

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The Dollar index continued its pull back and managed to reach 79.90. Short-term trend remains up as the corrective move from 80.35 is very shallow and weak. The Dollar index has not reached the 38% retracement, instead it is trying to challenge its recent highs. Now at 80.08, I believe it is more probable to see it pulling back below 79.90 in order to complete the downward corrective move that started at 80.35.

Price remains above Ichimoku cloud. I believe the pullback I expect will bring price towards Ichimoku support at 79.75. I then expect price to reverse upwards to new highs. I believe the longer-term trend has reversed, and it is only a matter of time to see a confirmation of this trend reversal.

The daily chart still does not show a confirmation of a longer-term trend reversal. I will have to see the Dollar index rise above the Ichimoku cloud for a confirmation of trend reversal. The daily chart could be forming a bullish flag in the Dollar index and this is another bullish sign.

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