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02.04.2014 10:26 AM
#USDX technical analysis for April 2, 2014

The Dollar index continues to trade sideways between 80 and 80.40. If support at 80 fails, then we should expect a downward push in the index to bring it near 79.70-79.80. If however the index breaks above 80.40, we should expect a move towards 80.70 at first.

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Short-term trend is neutral. The index has no clear direction but a small downward bias after being rejected at 80.40. Support at 80-79.85 is strong from the Ichimoku cloud and the 38% Fibonacci retracement. Longer-term picture remains bullish as long as price stays above 79.20.

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The sideways consolidation as shown in the daily chart above and the rejection at the 80.40 previous high makes be believe that there are increased chances of a downward move towards 79.80 or even 79.70. Long-term resistance at 80.40 is important and if broken could open the way for a new upward move towards 81.40.

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