FX.co ★ #USDX technical analysis for April 24, 2014

The Dollar index does not show any sign of upward reversal. The Dollar index remains below short-term resistance at 80 and inside the Ichimoku cloud of the 4 hour chart. Price was rejcted at 50% Fibonacci retracement. This makes me believe that more downside is to be expected. Short-term resistance is found at 80.10 and short-term support, at 79.60.

This sideways consolidation that is taking place for a couple of days will soon end and I believe that there are more chances to see the index challenge 79.20 than breaking above 80.20. Currently, we remain neutral as price remains inside the cloud.

The long-term view remains bearish as shown in the daily chart. Price is below the Ichimoku cloud. Price got rejected at the blue downward sloping trend line and despite the double bottom at 79.20, I believe there are more chances that these lows are going to be broken soon. Long-term trend remains down as long as the index is below 80.60 and 81.30. Downside targets are 78.50 and 77. Downward acceleration will come once 79.20 support is broken. Trend will reverse upwards only if 81.30-.40 is broken.