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08.07.2014 11:27 AM
#USDX Technical analysis for July 8, 2014

The Dollar index is making a bullish flag pattern. The sideways consolidation after the sharp rise from our reversal level of 79.75 is the flag. This is also shown in the chart below.

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The Dollar index is above the red downward sloping trend line resistance that was broken and above the Ichimoku cloud. Support is at 80.20 and resistance at 80.30-80.35. A break above resistance could push the Dollar index towards 80.50-80.70. The trend has reversed at 79.75 as we expected. This could turn out to be a longer-term price reversal. It is important for bulls to hold the index above 79.90.

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The bounce off 79.75 and the Ichimoku cloud is unfolding as expected. Now, bulls need to break above 80.60 resistance (61.8% Fibonacci retracement of the decline from 81 to 79.75). I remain bullish targeting at 80.60 for the short term.

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