11.11.201410:56 Forex Analysis & Reviews: #USDX Technical analysis for November 11, 2014

Long-term review

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The Dollar index has held above 87 and bounced strongly towards its previous highs. The upward move is fragile and I will not be surprised to see a rejection at 88 and a pullback below 87 towards 86. 87.50 is important short-term support that if broken will confirm the trend reversal towards 87 at least.

The Dollar index remains inside the upward sloping channel and above the Ichimoku cloud. However, the pullback did not reach the 38% retracement and that is why I give more chances for a pullback than the continuation of the uptrend. Breaking below short-term support of 87.50 will give me a sell signal with 87 as 1st target and 86.70 as 2nd target.

The bullish flag formation remains valid and so our longer-term target of 91. This does not mean we could not see a pull back towards even 85-84 levels. A longer-term trend is bullish as long as price is above the Ichimoku cloud in the daily chart. At current price levels, I prefer to remain neutral and wait for the pull back.

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