FX.co ★ #USDX Technical analysis for September 2, 2014

The Dollar index gave a new higher high yesterday as expected very close to our 83 target. The trend remains up. Bulls should raise their stops to protect their positions. The Dollar index continues to make higher highs and higher lows. In our past analysis during early August, I mentioned that the bullish flag target was 83-84. We reached the first level.

Price remains above the Ichimoku cloud and above the red trend line support. Support is found at 82.75 and 82.60. Resistance is at 83 and 83.40. The trend remains bullish. As long as price is above 82.65, we remain short-term bullish.

The daily chart continues to stay bullish. Price is inside the upward sloping channel and above the Ichimoku cloud. Support is found at 82.50. A daily close below 82.50 will give me a daily sell signal that could push the index towards 82 at least if not touch the cloud at 81.30.