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

The Dollar index is testing short-term resistance levels that could signal trend reversal and resumption of up trend. The downward move from the highs was labeled as a correction and as I noted in previous analysis, my view remains longer-term bullish targeting 90-92. 

Black line= resistance

Red lines = price channel

The Dollar index is testing the black trend line resistance and remains inside the upward sloping channel. Although it still remains below the Ichimoku cloud, there are increased chances of the resumption of the up trend since price has almost reached the 38% retracement and is now bouncing off the lower channel boundaries.

In the daily chart the Dollar index remains above the Ichimoku cloud and is trying to give a bullish break out of the bullish flag pattern. Breaking this bullish flag will give me target at 90 for the Dollar index and a stop for bulls at 84.40.