USDX technical analysis for January 13, 2016

The Dollar index still holds above the medium-term upward sloping trend line support but looks like momentum is weakening near the 78.6% Fibonacci retracement of the latest decline.

Blue line - trend line support

The Dollar index is trading above the Ichimoku cloud and above the blue trend line support. Although early on Monday morning when markets opened price broke below it, bulls stepped in strongly and pushed prices back towards 99.

The Dollar index is just below the 78.6% retracement resistance. This is an important resistance level and a reversal is highly probable in this area. A break below 98 will be a strong sell signal with target at least near 97. Short-term support is at 98.80-98.70, so a break below that area will give an initial reversal signal.The material has been provided by InstaForex Company - www.instaforex.com