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

The Dollar index made a short-term pull back towards 85.50 as expected yesterday and did not break lower. The trend remains bullish as long as we trade above yesterday's lows and we should expect new highs. If support is broken a bigger downward correction will start.

Red line = resistance

Blue line= support

Green line = price channel

At 85.50 we find the important short-term support. If this support is broken we should expect the Dollar index to break lower towards 85. The trend is neutral in the 30-minute chart and we should wait for a breakout signal above 85.66 or below 85.47 before opening a position.

Green line = price channel

Red line = resistance

The longer-term trend remains fully bullish. According to the ichimoku cloud indicators trend remains fully bullish. Only if we see a change in the slope of the tenkan-sen and kijun-sen we should worrying for a bigger trend reversal. Important support is at 85.50 area. If broken, a deeper correction will start towards 85 or even 84.50. On the other hand, we could see one more new high at least if we break and close the day above 85.66.