FX.co ★ #USDX Technical analysis for July 24, 2014

The Dollar index is very close to the previous high of 81. It seems that selling pressures rise as the price is getting closer to that area. A pull back has started early today but I believe this is just a pause to the larger uptrend that has started from 79.75.

The Dollar index has broken the short-term upward sloping trend line and might pull back towards 80.70-80.50 (max) area. The price is in uptrend above the Ichimoku cloud. I believe this uptrend will continue and resistance at 81 will be broken eventually. The larger pattern remains bullish with 81.75 medium-term target.

The daily chart shows clearly how the price was rejected to the resistance area. However, I believe this pause before the rise is only temporary. This uptrend will resume again after a small correction. The daily trend is up and we target at 81.75.