FX.co ★ #USDX technical analysis for February 12, 2015

The dollar index is preparing for a breakout to new highs as the price holds support and approaches important resistance levels. A break above 95.27 will be a bullish signal with 95.90 as first target. The longer-term trend with 100-101 target remains valid.

Green line = resistance

Blue line = support

Support is found at 93.40. The short-term support by the Ichimoku cloud is found at 94.10. The trend remains short-term and bullish but we are close to important resistance of 95.20-95.30. Breaking this resistance will be a very bullish sign. A rejection at the resistance will bring the index back towards the Ichimoku cloud support at 94.

The daily chart remains bullish as the tenkan-sen support is found at 94.20 and is flatting out. The same with the kijun-sen support at 93.50. This flattening move by the index is a consolidation and a pause to the longer-term uptrend. I remain bullish for longer term with 100-101 target.