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11.11.2014 10:56 AM
#USDX Technical analysis for November 11, 2014

The Dollar index has held above 87 and bounced strongly towards its previous highs. The upward move is fragile and I will not be surprised to see a rejection at 88 and a pullback below 87 towards 86. 87.50 is important short-term support that if broken will confirm the trend reversal towards 87 at least.

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The Dollar index remains inside the upward sloping channel and above the Ichimoku cloud. However, the pullback did not reach the 38% retracement and that is why I give more chances for a pullback than the continuation of the uptrend. Breaking below short-term support of 87.50 will give me a sell signal with 87 as 1st target and 86.70 as 2nd target.

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The bullish flag formation remains valid and so our longer-term target of 91. This does not mean we could not see a pull back towards even 85-84 levels. A longer-term trend is bullish as long as price is above the Ichimoku cloud in the daily chart. At current price levels, I prefer to remain neutral and wait for the pull back.

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