Technical analysis of USDX for January 9, 2018

The Dollar index is moving higher as expected. The trend is bearish as long as the price is below 93.65 but at least a short-term bounce towards 92.60 was expected and mentioned in our previous analysis. I believe we are heading towards that level of resistance and we could see it this week if not today.

analytics5a5475f01d5b0.png

The double bottom at 91.77 played out nicely so far. The price is above both the tenkan- and kijun-sen indicators and is testing the Ichimoku cloud resistance. The price is heading towards the 38% Fibonacci retracement which is my short-term target. Resistance is at 92.60-92.70. Support is at 92.10.

analytics5a54767f00717.png

Blue lines - bearish channel

The Daily chart shows how the price is trying to make a bounce. The trend remains bearish as the price is still inside the bearish channel and below the Daily cloud. Daily resistance is at 93.50. Support is at 91.70. I expect the bounce to continue and even challenge the upper channel boundary. A break below 92 will be a bearish sign that will decrease dramatically the chances of a move towards 93.

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