FX.co ★ #USDX Technical analysis for September 11, 2014

The Dollar index is making a short-term sideways consolidation. The trend remains fully bullish with 85 as a target. However, bulls should be very cautious as we are getting close to very important resistance levels. The risk reward does not favor bulls now. This does not mean that traders should go against the up trend.

Short-term support is found at 84.05. Resistance at 84.50. A break above resistance is most probable as this looks like a bullish flag. Ichimoku cloud indicators remain fully bullish. A move to new highs is more probable. Long trades should be preferred with a stop placed close by at support.

The daily chart remains fully bullish. There is no sign of a trend reversal. Price has been consolidating for the last couple of days. More upside is more probable than a reversal towards the 23% retracement. However bulls should keep their stops tight as we are getting very close to huge long-term resistance. I avoid going short this index as the up trend is very strong and there is no sign of reversal.