FX.co ★ #USDX Technical analysis for April 25, 2014

The Dollar index continues to trade in a neutral zone and in a sideways consolidation range of 80 and 79.70. Price has no clear direction. Price is trading below the 50% retracement resistance. Price is still inside the Ichimoku cloud. So it is important to wait for a break out or break down before opening a position.

Short-term resistance is at 80. Short-term support is at 79.65. The trend is neutral. So we prefer to stay on the sidelines waiting for a signal. Sometimes it is preferred to wait and have no position than have a position that has a 50-50 chance of success.

The daily chart continues to favor bears. Price is below the trend lines and below the Ichimoku cloud. Price is in a downtrend making lower lows and lower highs. Important long-term support is at 79 and long-term resistance at 81.30. A break below 79 could bring the Dollar index towards 78.50 or even 77. A break above 80.70 could bring the index to 81.30 or even 83.