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26.08.201411:40 Forex Analysis & Reviews: #USDX Technical analysis for August 26, 2014

Long-term review

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The Dollar index made a double top yesterday and got rejected at the previous highs at 82.64. The short-term bearish reversal has brought the index right on the Ichimoku cloud support. At 82.40 the Ichimoku cloud support should hold the selling pressures and give the index a strong upward bounce towards 82.70.

The Dollar index has broken the green downward sloping trend line, got rejected at 82.64 and is now back testing this break out level. Support at 82.40 is important for the short term. A strong bounce towards the highs is expected as long as the index remains above 82.40. Breaking below 82.40 and below the Ichimoku cloud could push the index towards 82.

Strong resistance is found at 82.70 in the daily chart as prices have hit the upper channel boundaries. Critical daily support is found at 81.85 where the channel boundaries are. Bulls should be very cautious and keep their stops tight.

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