FX.co ★ USDX technical analysis for August 18, 2015

The Dollar index has broken the short-term resistance level of the 38% Fibonacci retracement and is trying to push higher towards the Ichimoku cloud on the 4-hour chart. However, the medium-term trend is bearish with a possible pullback towards the triangle support at 95.

The Dollar index has broken above the kijun-sen resistance (yellow line) and is heading towards the Ichimoku cloud. I expect to see price get rejected at that level and give new lows. I believe the downside is not over for the Dollar. Support is at 96.10 and resistance at 97.10.

Red line - resistance

Green line - support

The Dollar index remains inside the triangle pattern and is testing the 1st support area as shown by the blue rectangle areas. The Dollar index should push towards the lower triangle boundary towards 95. A break above the triangle will imply the start of a new uptrend towards new highs.