FX.co ★ #USDX Technical analysis for August 29, 2014

The Dollar index has made a short-term upward reversal yesterday but still not a new high. This double top near the 61.8% retracement is a bearish sign and we remain bearish preferring short position specially if support at 82.40 is broken.

Trading inside the ichimoku cloud of the 4-hour chart, the Dollar index has made a lower high at the 61.8% retracement of the decline from 82.74. I believe selling pressures will push the index lower and break support of 82.40. Breaking this support will be another sign of weakness for the Dollar. I remain bearish and expect more downside pressures to push the index towards 82 at least.

The Dollar index is making a pull back after touching the upper channel boundaries. On the daily level, the trend remains bullish but I believe there are increased chances of a trend reversal from the current levels. Bulls should keep their stops tight and near 82.40. Breaking below that level will be a sell signal that could push the index towards 82 at least or even 81.85. In conclusion, I prefer closing long positions or even taking short positions with 82.54 as stop rather than opening new long positions.