FX.co ★ #USDX technical analysis for October 6, 2014

The Dollar index has made a new low as expected and remains in a strong up trend that we suggest we should not bet against it as it is very strong. The next target we have for the Dollar index is at 87.17 and at 87.70. 

In the short-term the Dollar index remains in bullish trend and it is forming a bullish flag pattern. A break above 86.65 will give us a short-term buy signal and a break out above the flag with target  above 87. My first target is at 87.17. Support is found at 86 and 85.85.

The daily chart remains fully bullish in Ichimoku cloud terms. Price is still inside the upward sloping channel and trend remains strongly bullish. Important daily support is found at  85.70 and resistance at 87.20. I expect this up trend to conitnue even towards 90 as long as we trade above 85.50.