FX.co ★ #USDX Technical analysis for October 3, 2014

The Dollar index continues to hold the important support at 85.50 and remains in a fully bullish trend. The trend will reverse to bearish if the index breaks below 85.50. The next upside target is at 87-89.

In the short term, the trend is bullish and support is found at 85.70. Price is above the ichimoku cloud and is trending higher making higher highs and higher lows after confirming support at 85.50. This support level has been tested and was not broken. This is a sign of Dollar strength.

Green line = price channel

The Dollar index remains inside the upward sloping channel. Ichimoku cloud indicators remain fully bullish. Support at 85.50 was held and we could see an upward break out soon towards 87. Breaking below 85 could signal a trend change on a daily basis. I remain bullish expecting this up trend to continue higher. Important for bulls to raise their stops as a possible reversal will be very sharp and could push the index towards 82-83.