FX.co ★ #USDX technical analysis for July 4, 2014

Trend reversal from the Ichimoku cloud and the 61.8% retracement has been confirmed. For the last few weeks I've been expecting the Dollar index to drop towards 79.75 before making an upward price reversal.

Short-term trend has changed to bullish as price has broken above the short-term resistance of 79.88 and has reached the longer-term resistance of 80.35 where the Ichimoku cloud is found. Additionally price has broken above the downward sloping red trend line and is now back testing it.

Bears were warned on time of an expected and highly possible trend reversal from the 61.8% Fibonacci retracement level. This is exactly what happened and we now need to see if there is a followup. Breaking above 80.70 will increase the chances of reaching 81 and why not breaking above it. The trend remains bullish as long as we trade above 79.75.