21.04.201410:34 Forex Analysis & Reviews: #USDX technical analysis for April 21, 2014

Although longer-term trend remains bearish as no important previous high is broken, the short-term trend in the Dollar index is neutral. The Dollar index continues to hold above important support at 79.25-.35 but also below short-term resistance at 80.

The Dollar index has two important levels that will decide intermediate- and long-term trend. These are shown by the blue shaded areas in the chart above. The short-term picture is neutral as price remains inside the Ichimoku cloud, above the red upward sloping trend line and below the red horizontal resistance trend line at 79.90. A break above 79.90 could push the index towards the 61.8% Fibonacci retracement at 80.10. A break below the red trend line at 79.60 could push the index towards 79.35.

The daily chart continues to favor bears and short positions in the Dollar index. Price is below the Ichimoku cloud and the red downward sloping trend-line. However a double bottom is made around 79.20-.30 where the long-term upward sloping trend is found and we still have not seen a confirmed break down of this trend line as both times price moved below it, both times it came back up above it. So support at 79.20 is crucial and if broken this will be a strong sell sign that will  target 78.50-78.20.