FX.co ★ #USDX Technical analysis for October 15, 2014

The Dollar index has made an important bottoming formation around 85 where the 23.6% retracement is found. Some days ago I mentioned that the sideways move in the Dollar index is most probably a consolidation before a new upward move. I remain bullish as long as prices remain above 85.

The Dollar index remains inside the upward sloping channel and is now trying to break above the Ichimoku cloud resistance. Breaking abe 86 will be a bullish sign and we could be at the early stages of another upward move towards 87.17. The higher low at 85.07 is also a good sign specially now that it was followed by a higher high.

In the daily chart the Dollar index has remained above the 23% retracement and has retaken the tankan-sen. This is a bullish sign and I expect at least a double top to be formed if not new higher highs that will bring the index towards 88-89. Long-term trend remains bullish and very strong. Betting against it is very risky and I prefer to raise stop to 85 for any long position.