FX.co ★ #USDX technical analysis for March 12, 2015

The US Dollar index has reached our target of 100 and has made a sharp reversal towards 99. This sharp reversal is most probably a short-term correction and the trend will resume higher towards the 61.8% retracement at 101.50.

The US Dollar index has pulled back towards the tenkan-sen (purple line). Next support is at 98.15 at the kijun-sen (yellow line). The short-term trend remains bullish, although we are close to reversing the short-term trend to bearish if we break below 98.95.

The longer-term trend remains fully bullish. I still expect the US Dollar index to reach at least the 61.8% retracement at 101.50. Important monthly support is at 95. As long as the price is above that level, the long-term trend will remain bullish. Strong resistance is at 101.50. Bulls need to be extra careful as the rise from low 80's is very steep.