FX.co ★ #USDX technical analysis for March 13, 2015

The Dollar index bounced higher yesterday but I believe the downward correction might not be over yet. The longer-term trend remains fully bullish and we should soon see the index reach 101.50. But bulls need to be cautious as we could first visit 98-97.80 before we resume higher.

Red line = support

If support at 99 is broken, we should expect the price to move towards 98 and near the 38% retracement. I believe the downward correction might not be complete and bulls should be cautious as we could see another sharp decline similar to the first one from 100.

The monthly chart remains fully bullish. Despite the short-term pull back, I expect the target at 101.50 and the 61.8% retracement to be be achieved shortly. Important monthly support is at 94.50-95. As long as we trade above that level, bulls are in control.