FX.co ★ #USDX technical analysis for July 23, 2014

The Dollar index has broken above the sideways short-term consolidation and made a new higher high towards 80.80. The previous high at 81 is our short-term target. Price remains in an uptrend and above the Ichimoku cloud support. The bullish flag that we mentioned in previous analysis has worked as expected and the market gave us another higher high.

Short-term support is found at 80.50 and short-term resistance at 81. Price is trending higher as can be seen in the 4-hour chart above. Higher highs, higher lows, and price are above the Ichimoku cloud support. The second bullish flag target is just below 81.10.

The daily chart of the Dollar index remains bullish as price is above the Ichimoku cloud and bounced strongly yesterday as expected. Resistance from the previous high at 81 is the first important obstacle for the uptrend that started at 79.75. I expect this resistance to be broken and the Dollar index to continue higher towards 82. The trend in the daily chart remains bullish and so do we as long as price is above the Ichimoku cloud.