FX.co ★ #USDX analysis for September 2, 2013

The Dollar Index has managed to maintain the 82 level and is targeting 82.50. Prices move upwards in an impulsive pattern and make small sideways corrective patterns confirming that the trend is up with higher highs and higher lows. Short-term support is found at 82.10-82-81.90 and short-term resistance is found at 82.30-50.

For this upward trend to continue, prices should hold above the upward sloping red trend line support as shown in the chart above. Breaking it will most probably commence a corrective phase that could push prices towards 81.50.

As the daily chart above shows, the prices have broken the downward trend line and are now going to test the 82.50 resistance. A pause in the upward move could be justified at these prices levels. We believe that Dollar strength will continue as the price reversal from 80.76 will push prices towards the previous highs and will challenge the 84.75 high. Long-term stop for bulls is the 81 price level. Short-term traders should use 81.99 as stop.