FX.co ★ #USDX Technical analysis for July 21, 2014

The Dollar index is testing important resistance at 80.60-80.70. The trend remains upward. Price is above the Ichimoku cloud in the 4-hour chart. Support is found at 80.35 and then at 80. Resistance is found at 81 and 81.75. As I mentioned in my previous post, breaking above 80.70 will confirm that my target is 81.75.

In the short-term, the Dollar index is forming a bullish flag. Breaking above 80.65 will confirm an upward break out and a target near 81. Breaking below 80.50 will push the index towards its next support at 80.35 and then at 80.

The Dollar index is above the Ichimoku cloud and is making higher highs and higher lows in the daily chart as shown above. My target is 81.75 and I believe the upward momentum will become stronger in the Dollar index. The 80 price level is important daily support and I remain bullish as long as we trade above that level.