FX.co ★ #USDX technical analysis for March 28, 2014

With Spanish March CPI worse than expected and EURUSD breaking lower towards 1.3710, the Dollar index gains some strength and moves higher to test resistance at 80.40. Short-term view is bullish and long-term view mildly bullish. This can turn to strongly bullish if the Dollar index breaks above 81.30-40.

Short-term support is found at 80 and short-term resistance at 80.30-40. Breaking support could push the index towards 79.70. Breaking resistance will push the index towards 81.

The daily chart shows how the index has managed to move back above the blue trend line resistance and is now going to test the downward sloping trend line and the Ichimoku cloud resistance. Trend is up and I believe more Dollar strength will be evident in the coming weeks as I believe 79.20 is an important long-term low and I see increased chances that this is not going to break this low.