FX.co ★ #USDX Technical analysis for February 19, 2014

The Dollar index was rejected at the short-term resistance level of 80.20 and is now back testing the recent lows. Is a double bottom forming? The index was rejected at the upward sloping black trend line resistance. This made the index pull back towards its recent low and short-term support at 79.95-90.

The Dollar index remains inside the downward sloping channel. The index has been rejected at 80.20-30 resistance. We expect the index to make another try higher towards 80.40.

The daily chart shows that the index is above the horizontal support at 79.90. We believe that this support is very important as well as the support at 79.75. This area is very important for the longer-term trend, and we expect a good upward bounce from these levels as long as support holds.