FX.co ★ #USDX analysis for August 16th, 2013

The Dollar Index yesterday tried to break above the 81.90-82 resistance but the try failed. This resulted in a new low towards 81.10 and the 76.4% Fibonacci retracement. Currently, at 81.30 one can go long with 81.10 as a stop. Traders can wait also to enter long if 81.90-82 are broken or enter here half position and add above resistance. We believe, the decline is corrective and we expect an upward move.

The price have retraced enough for wave 2 and we now need to break above 81.45 as the short-term resistance and 81.90 is the last high. Support is found at 81.10 and at 80.95.

In the daily chart, we see that the price that bounced back from the downward sloping blue trend line are seeking for support at the upward sloping blue trend line. We believe that soon we will see an upward break out on the Dollar Index. Important levels to watch out are 81.90-82.50-83.45 and for lower prices watch out 81.10-80.85-80.50-80.