Technical analysis of USDX for January 10, 2018

The Dollar index has reached its target of 92.60 as expected. Price is showing rejection signs at this resistance area. For the longer-term bullish view towards 96-97 to be achieved, we need to break yesterday's highs soon and move towards the important resistance of 93.60-93.70.

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The Dollar index double a bottom pattern played out as expected. Price target of the Ichimoku cloud and the 38% Fibonacci retracement has been met. A rejection here and a break below 92.20 will be a bearish sign for the index, implying that the main bearish trend is resuming and we should expect price to see new lows below 91.

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Blue lines - bearish channel

The Dollar index has bounced as expected but this could only have been a pause in the main down trend started at 95. It is very important for bulls to break above 92.60 and hold above 92.20. Next important resistance that bulls need to break is at 93.60-93.70. Daily trend remains bearish with high chances of a move below 91 as long as price is below 93.60.

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