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05.03.2015 10:36 AM
#USDX technical analysis for March 5, 2015

The Dollar index remains in a fully bullish mode now that we have made new 11 year highs. The Dollar is very strong and as I have been saying for some time now, longer-term trend points to 100-101 and bulls are in full control of the trend. Becase of the EUR/USD in the major component of the Dollar index breaking to new lows, trend is clearly bullish for the Dollar. I remain long since the last buy signal (95 level). The triangle pattern were broken upwards.

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Red rectangle = support area

The Dollar index is making higher highs and higher lows. The price is above the Ichimoku cloud. Both tenkan-sen and kijun-sen are positively sloped and after a bullish cross at 94.50 the bullish trend is picking up. The Chikou span has no resistance levels close by and trend is fully bullish in all time frames.

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The monthly chart remains fully bullish and price has now broken above the 50% retracement. Critical support is at 94. As long as we trade above it, I will be expecting the index to reach the 61.8% retracement above 101. We are making new 11 year highs. This not a time to bet against the trend.

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