FX.co ★ #USDX technical analysis for March 5, 2015

The Dollar index remains in a fully bullish mode now that we have made new 11 year highs. The Dollar is very strong and as I have been saying for some time now, longer-term trend points to 100-101 and bulls are in full control of the trend. Becase of the EUR/USD in the major component of the Dollar index breaking to new lows, trend is clearly bullish for the Dollar. I remain long since the last buy signal (95 level). The triangle pattern were broken upwards.

Red rectangle = support area

The Dollar index is making higher highs and higher lows. The price is above the Ichimoku cloud. Both tenkan-sen and kijun-sen are positively sloped and after a bullish cross at 94.50 the bullish trend is picking up. The Chikou span has no resistance levels close by and trend is fully bullish in all time frames.

The monthly chart remains fully bullish and price has now broken above the 50% retracement. Critical support is at 94. As long as we trade above it, I will be expecting the index to reach the 61.8% retracement above 101. We are making new 11 year highs. This not a time to bet against the trend.