FX.co ★ #USDX Wave analysis for October 23, 2014

The Dollar index has broken above the Ichimoku cloud resistance and above the black trend line resistance I showed yesterday. However a complex wave correction may be under way before the longer-term up trend resumes. Bulls continue to have the upper hand but we need more signs of strength. 

Black line= resistance

The Dollar index did not reach the 38% retracement and that is the main reason I post this complex wave count today. Alhtough price has broken above the black trend line and above the Ichimoku cloud, a pull back inside the cloud will increase the chances of this wave count that will eventually bring price towards 84.

In the daily chart I have posted the bullish flag I'm seeing. Yesterday's break out  might be a false break out so we should remain cautious. The confirmation of the break out will come once price breaks above 86.20 resistance. My longer-term view remains bullish and I do not see the index falling lower than 84-83.50. My upward targets at 90-93.