FX.co ★ #USDX analysis for October 31, 2013

The Dollar index continues to move higher inside our upward sloping channel. Our short-term view was bullish from two days ago, and we continue to get confirmation of short-term uptrend as pries make short-term higher highs and higher lows breaking above short-term resistance levels.

Prices have reached the 50% Fibonacci retracement level and the upper boundaries of the upward sloping trend channel. We might see a pause in the upward move today, but still there is no signal that this upward bounce has ended. A sell signal will come if prices break below the critical support area noted in the chart above near 79.55.

The longer-term trend is bearish still, but we see the index that now tries to challenge the downward sloping trend lines as shown in the chart above. Important intermediate and long-term resistance levels are found at 80 and 80.60 and for longer-term trend to change to up, these resistance levels must be broken upwards. Short-term trend is upward and is challenging the intermediate term trend.