FX.co ★ #USDX Technical analysis for August 22, 2014

The Dollar index has broken the short-term upward sloping channel. A short-term downward pull back is expected to push price towards 81.80. The intermediate-term trend remains bullish. However, price is showing short-term reversal signs to the downside.

Price has broken the upward sloping channel as shown in the 4 hour chart above and is testing the Ichimoku cloud support. Short-term resistance is found at 82.20 and short-term support at 82. If resistance is broken, I would expect at least a double top. If support is broken, we should expect price to fall towards 81.80.

The daily chart remains bullish as price remains inside the upward sloping channel. As mentioned yesterday, we are at the final stages of wave 5. Bulls should not get overconfident that this rally will never end. Initial pull back signs were given yesterday and daily support is found at 81.80. We could very well be in wave (4) of 5. This scenario will be canceled if price breaks below 81.65. The trend remains up on a daily basis.