FX.co ★ #USDX Technical analysis for May 29, 2014

The Dollar index continues its upwards trend as prices are making higher highs and higher lows. The index is now approaching major resistance of 80.70. The bullish momentum of the index implies that Dollar strength will continue and that it has more upside.

Price continues to trade above the Ichimoku cloud and above the trend line support. Short-term support is found at 80.35 and short-term resistance is at 80.70. If support is broken I expect the Dollar index to fall towards the Ichimoku cloud support at 80.20.

In the daily chart as we mentioned in previous analysis, the Dollar index has managed to break above the Ichimoku cloud. Now it has also managed to move above the long-term blue upward sloping trend line that was resistance. A close above this trend line will support bulls. The trend is up. Long-term critical support is now found at 80. Breaking below this support level will cancel any long-term trend reversal sign given by recent price action. We still believe that this trend is reversing upwards in the longer term.