FX.co ★ #USDX technical analysis for April 11, 2014

The Dollar index has not made much since yesterday. The Dollar index remains above critical support at 79.20 but trend remains down. There is no bullish signal. Ichimoku clouds remain above the current price. This is bearish. The Dollar index is now back testing the broken wedge trend line. Short-term support is 79.40-35.

Short-term resistance is found at 79.45-50. If broken, we could see a bounce towards 79.85. Strong resistance is found at 79.80 up until 80 level. A reversal from this level could come as the index has reached oversold levels, but we prefer to remain neutral or short until 79.50 is broken upwards.

The rejection on a daily basis at the Ichimoku cloud at 80.60 has reversed trend sharply lower. Support is being tested and trend remains down. This could lead to more downside towards 78 if the lows at 79.20 are broken. Bulls will have the upper hand only if price breaks above 80.60.