Technical analysis of USDX for January 17, 2018

The Dollar index is showing reversal signs. Although it made a new low at 90.12 yesterday, it is now trying to break above yesterday highs. Short-term trend remains bearish and so far we consider this bounce as a corrective one and not a bigger reversal.

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Blue line - resistance

The Dollar index has short-term resistance at 91.30 and next at 91.70. Breaking above these levels will open the way for a test of 92.60 which is the most important short-term resistance. Only a break above the 92.60 could signal a bigger upward reversal. So far trend remains bearish.

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Blue line - long-term resistance

The weekly candle is forming a bullish reversal hammer. However, we have nearly 3 more trading days ahead of us so it is still early to call this a reversal sign. But bears need to be cautious. Weekly resistance is found at 92.60 as well. A weekly close above 92.60 would be a bullish sign. A break above the blue trend line will most probably confirm the reversal with 97 as first target.

The material has been provided by InstaForex Company - www.instaforex.com