FX.co ★ #USDX analysis for January 17, 2014

Although the Dollar index doesn't break above the important resistance area of 81-81.50, it still is a good sign that prices do not get rejected and do not pull back towards 80.40. The Dollar index continues to trade near its recent highs. 81.15 is short-term resistance that if broken could push prices towards 81.50. Short-term support is found at 80.80 that if broken could push prices towards 80.40.

Trend is not clear as prices remain within the trading range of 80.40-81.20. Our longer-term view favors the bullish expectations of reaching 83-84. Confirmation of this target will come once prices break clear above 81.50.

Nothing new from the daily chart. Prices test the important red resistance area and if broken we will target the blue area near 82.50-83. Prices may be forming a cup with handle formation here. The break out above 81.50 will confirm our target of 82.50-83. 80.40 is important support now and should be used as a stop for bulls.