FX.co ★ #USDX Technical analysis for July 30, 2014

The Dollar index remains in a strong up trend. I expect it to remain in this trend at least towards 81.75. Yesterday, we made a clear break above the previous high at 81. The Dollar index continues to make higher highs and higher lows and remains inside the upward sloping channel as shown in the charts below.

The Ichimoku cloud is below the current price. The break above 81-81.05 has pushed the index towards 81.30 which was our short-term target. Support at 80.95 was held and has now risen towards 81.10. Breaking below the 81.10 support will give me a short-term sell signal that could push the price towards 80.95. The tend remains upward as long as the price is above 80.50.

The daily chart continues to support our bullish view in the Dollar index. The trend remains up. The price is above the ichimoku cloud and inside the upward sloping channel. My target is 81.75 but I cannot rule out a move higher even above 82. The trend is strong and I expect it to remain strong in favor of the Dollar. We might see a pull back towards 80.70-80.80 but I believe it will be a buy opportunity.