FX.co ★ #USDX technical analysis for April 1, 2014

In the last couple of my posts I have mentioned how important the 80.40 resistance is. The Dollar index was unable to break resistance and was rejected. This resulted in a break below short-term support at 80.25. Breaking below this short-term support has pushed the index towards the Ichimoku cloud support.

The Dollar index has no clear direction. There is no clear trend. Prices are moving mainly sideways between the important resistance of 80.40 and short-term support of the Ichimoku cloud at 80-79.80.

In the daily chart, we see the index approaching the Ichimoku cloud resistance. The cloud has a downward slope while the sideways move of the index brings price closer to resistance. This means that soon we will see a break out above 80.40-50 and a move towards 81 or a rejection at 80.40-50 and a pull back towards 79.50. As long as the index trades below 80.40 are to prefer short positions.