The Daily Chart of Dollar Index (USDX) has recently broken out of a 10 month High and is still on a bullish trend.
The breakout has formed a support / resistance zone between the 10 month High and last month high. Thus, as long as Price has yet broken below this zone, it is safe to assume that the up trend will continue.
Daily Chart of USDX
Looking at H4, we see that there is a possible upward equi-distant channel, which has the lower channel being a good trendline support for USDX. This was shown by Price had bounced off for the past 2 incidents, whenever it hit or reached near the lower channel.
4 Hourly Chart of USDX
However, today we see a gap down to the lower channel support at the start of session, which was quickly bounced up again.
For the short term Bears, they might see that the recent rise is high and attractive to sell. But, they will have to break below the Support and Resistance Zone (about 30+ pips) in order to gain more bearish momentum for a big move.
In summary, we have a daily up trend for USDX, yet there is some weakness as of now. As long as Price does not break out below the current Support / Resistance Zone, the up trend is likely to continue.
