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

The Dollar index remains in up trend. However the pull back that is currently unfolding may be a part of wave 4 before a new high for wave 5. Price is still inside the upward sloping channel. Price is above the Ichimoku cloud support and bulls continue to have the upper hand.

A short-term reversal in the 4 hour chart may imply a pull back towards 82.15 is quite possible to test the lower channel boundaries. The trend remains bullish. Short-term support is at 82.15 and 82.05. Resistance at 82.35 and 82.50. I believe a pull back now is just another buying opportunity.

In the daily chart, I show in a more clear way the bigger picture. We are at the final stages of the rise from 79.75 and bulls should keep their stops tight. The trend remains up. My target is at 82.60 as long as price is above 81.70. Breaking below 81.70 will confirm that the upward move is complete.