FX.co ★ #USDX Technical analysis for September 23, 2014

The Dollar index is consolidating near its highs and lacks the strength to continue its upward move towards 85. The 85 level is a very strong long-term resistance that should be treated with extreme caution. Trend remains bullish and bears should be very cautious and trade with a tight stop loss. 

The Dollar index is being rejected at 84.80 and pulls back towards the Ichimoku cloud support at 84.25. Price is above the Ichimoku cloud. Support is found at 84.45 and 84.25. As long as price is above those two levels short-term trend will remain bullish.

Red line= resistance

In the daily chart we see the Dollar index remain  below the red line resistance as it has made 3 attempts to break above it and all three failed. A reversal from current market price will push the Dollar index towards 83.50 at least. Longer-term trend remains bullish.