FX.co ★ #USDX Technical analysis for July 9, 2014

The Dollar index has broken the flag pattern I posted yesterday but on the downside. The price has fallen towards the 80.10 support and continues to slide lower. The price is still above the Ichimoku cloud in the 4-hour chart and needs to break above 80.20 to give a buy signal.

The downward sloping move of the Dollar index is apparently corrective to the bigger upward trend that started at 79.75. Short-term support is at 80.05 and short-term resistance is at 80.20. I believe that soon we should see another move higher towards 80.60. This will happen if the index breaks above the 80.20 resistance.

The daily chart shows clearly how the price was rejected at the 50% retracement at 80.45. So, on a daily basis we need to break above that level and close above it. The Dollar index has pulled back again to support levels of the Ichimoku cloud. This support should be strong enough to re-energise bulls and give another move higher towards 80.70 at least. I remain bullish.