FX.co ★ #USDX technical analysis for December 31, 2014

The Dollar index remains in a bullish trend, and today it moved closer to our bullish flag target of 91. Trend remains bullish and trailing stops should be raised to 89.70. The short-term resistance is found at 90.10. A two-hour-candle close above it will be a bullish signal with new highs as target.

Green line = support

Bulls should not be worried as long the Dollar index remains above 89.70 . If support fails, I expect, at least a pullback towards the 38% retracement and the level where the Ichimoku cloud support is. The green rectangle shows the area where I expect a deeper pullback to find support.

Red line = long-term resistance

The weekly chart continues to be fully bullish. Weekly support is found at 88.60; and if broken, at 85.10. Price is still above the kijun-sen and the tenkan-sen with both indicators having positive slope. The Chiku-span is also bullish pointing higher. The Ichimoku cloud is below current price but it worries me that it is thin. Bulls should be very cautious and keep stops close.