FX.co ★ #USDX technical analysis for October 8, 2014

The Dollar index continues to remain inside the upward sloping long-term channel and continues to be in a fully bullish trend. There are some short-term worries regarding a possible trend reversal as the weekly chart gives signs of a possible top. Until the end of the week, we will have a better picture of whether this trend is over.

Green line = price channel

The Dollar index continues to trade inside the upward sloping price channel and above the Ichimoku cloud. Tenkan-sen and kijun-sen have not crossed and the index continues to trade above 85.50 and 85 support levels. Soon we will know if at 86.75 we have seen the highs or we should prepare for a new higher high towards 87.17 or 87.70.

The weekly chart remains bullish as price has held the 23% retracement at 85. Holding above this level will re-energise bulls and may push the index back above 86 towards 87. Important daily and weekly support is found at 85.50 and 85. A weekly close below 85 will signal that the top is in and we could expect a pull back towards 84.10 at least.