FX.co ★ #USDX Technical analysis for December 22, 2014

The Dollar index as expected after the strong reversal, is now making new highs getting closer to our target of 91 given some time ago by my bullish flag analysis. Bulls remain in control after the sharp upward reversal we saw last week. Bulls should continue to support this upward move as it seems that it has only just started.

The Dollar index gave a new buy signal once price broke above the Ichimoku cloud last week. The short-term consolidation we observed last week was only a pause to this bullish reversal. The chart is fully bullish in ichimoku cloud terms and I expect to see 91 soon.

The Dollar index weekly chart remains bullish. Weekly support at 87 was held and the new upward move that has just started, is expected to make a stop near 91 where the bullish flag target is found.