17.09.201410:31 Forex Analysis & Reviews: #USDX Technical analysis for September 17, 2014

Long-term review

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The Dollar index has made a spike below 84 yesterday only to pull back inside the sideways consolidation. This fake break down has delayed the start of a new move in the Dollar index as price remains inside the triangle pattern.

Red line = resistance

Blue line = support

Trend is neutral in the short-term. Price is moving sideways. The Ichimoku cloud will provide support in the short-term. The index should bounce higher and break above the triangle pattern shown in the chart above. Tonight we expect the FOMC to provide liquidity and direction for the Dollar.

Red line = resistance

Trend in the daily chart remains bullish but we also see a bullish flag forming. Traders should be very cautious with the FOMC tonight so it would be wise to first get confirmation of the break out and then follow the trend either towards 85 or 83. I'm neutral waiting for a break out.

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