FX.co ★ #USDX analysis for January 16, 2014

The Dollar index is trading near its short-term resistance area of 81.15. Prices have stopped their rise just below the resistance as it proves to be a very strong obstacle. Bulls will need to show more signs of strength in order for the upward move to continue.

The price formation from 80.40 looks impulsive but the rise has stopped right on resistance. Breaking above 81.15 will help prices rise towards 81.50 which is the previous important high. For now as long as prices trade above 80.40 bulls will have more chances of success. Breaking below 80.40 will push prices towards 79.80.

Nothing new in our daily chart. Prices are trading within the strong resistance area. 80.40 is important support and bulls should use it as a stop. Our MA are starting to take a positive slope and this is good for our bullish scenario which expects prices to rise towards 83. We remain long as long as prices trade above 80.40 and we target 83.