FX.co ★ USDX technical analysis for August 31, 2015

The Dollar index although it made a new higher high on Friday, the price finally rejected at the resistance level. We could see a pullback towards 94.90, but a break below that level will increase chances of a deeper correction towards 92.

The US Dollar Index as can be seen in the 4-hour chart above. It has managed to break above the Ichimoku cloud. The price is still below the 78% retracement resistance as this is the last stand for bears. A pullback from current levels will push the index towards 95.

Red line - resistance

Green line -support

The US Dollar Index continues to trade inside the bullish flag pattern and above the weekly ichimoku cloud. The trend is mainly neutral and I expect the price to move back towards the green trend-line support in order to complete the corrective formation. Breaking above the red trend-line resistance will confirm that a new upward move has started.