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27.03.2014 12:53 PM
#USDX technical analysis for March 27, 2014

The Dollar index continues to trade above short-term support levels and continues to move sideways after the big spike up from 79.20. The short-term resistance at 80.40 if broken is a good buy signal with 80.70-80 next target. The index trades above the Ichimoku cloud and above the broken trend line.

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The retracement towards 79.80 has completed the downward correction quite fast and this means that we could very well be in a triangle correction before moving higher. A move above 80.25 would be a good bullish sign. A break below 80 will be a bearish sign.

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Our longer-term view remains bullish as long as we trade above 79.20. EURUSD is a major component of the index and if this pair breaks below 1.3750 we should expect the index to rise above short-term resistance levels.

Summary
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Alexandros Yfantis
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