FX.co ★ #USDX technical analysis for July 1, 2014

The Dollar index has reached our target below 80 at 79.75. The Dollar index has reached the Ichimoku cloud in the daily chart as I've been expecting for the last few weeks and has also touched the 61.8% Fibonacci retracement.

Short-term trend is bearish. Price continues to make lower lows and lower highs. Price is still below the Ichimoku cloud in the 4-hour chart. The Dollar index has reached the important support level of the 61.8% Fibonacci retracement as shown in the chart below. This is a price level where a trend reversal could take place. If this support fails to hold prices, we should expect the Dollar index to move towards 79.50. Resistance is found at 80.15-80.35 area.

The Dollar index has reached our target. Is this the time for a trend reversal. The support at the 61.8% retracement is the stop level that bulls should use. Although the trend remains bearish, bears should be very cautious.