FX.co ★ #USDX Technical analysis for August 14, 2014

The Dollar index has been very volatile yesterday. Despite the big downward spike, our important support of 81.35 by the Ichimoku cloud was held and the bullish channel was not broken either. The trend remains up and price is heading for new highs as the double top made is expected to be broken.

In the short-term price remains above the Ichimoku cloud. Support is found at 81.35. If broken, the upward move is over and we should expect a strong pull back. Resistance is found at 81.70. If broken, we should see a move towards 82. However, bulls should be very cautious as this is most probably the final stages of the upward move.

The daily trend remains bullish. Price is still inside the upward sloping channel. Yesterday, I mentioned in my analysis that a trend reversal and start of a downward move will be confirmed only if we see a daily close below and out of the upward sloping channel. Until then, the trend remains bullish. The daily support is found at 81.25 and daily resistance at 81.75. Bulls should keep their stops tight.