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USD Index Support Factors Holding

The USD Index rallied to 86.21 this week, a fresh high on the year. It has since been consolidating, and possibly topping. However, today, we are seeing support factors coming in play in the 1H chart.

(USDX 1H Chart 10/1)

We can see that price respected a previous resistance pivot at 85.80 as support, showing that USD-bulls are still in charge. This rebound also respected the 50-hour simple moving average, and the rising trendline from last week's of 84.36 as support. Furthermore, the 1H RSI is still holding above 40, which shows maintenance of the prevailing bullish momentum.

a break below 85.80 might open up the 85.45-50 support area. We can then consider a consolidation, bearish correction scenario.

If price can hold above 85.80 today, there is not topping, and price should remain bullish. Above 86.22, the next key resistance will be around the 88.70, 2010-high. 

(USDX Weekly Chart)