FX.co ★ #USDX Technical analysis for June 11, 2014

The Dollar index is just a few points lower than its recent low at 81. The Dollar index has found support at the 38% retracement and has bounced back upwards towards 81. The short-term trend remains up as price is making higher highs and higher lows.

The dollar index remains above the Ichimoku cloud both in the  4 hour chart and the daily chart. Although trend is up, I believe that we should expect trend to reverse lower from current levels towards 80. The signal for such a trend reversal will come once support at 80.75 is broken. We will have confirmation of the trend change if price breaks below 80.40.

A break above the 81 resistance level will cancel the bearish scenario I just mentioned. Breaking above 81 will be a bullish sign and any short position should be reversed to long. The daily Ichimoku cloud support is found at 80. A  pull back towards that level cannot be ruled out.