FX.co ★ Technical analysis of the US dollar for January 28, 2014

In the US dollar front, it made a double high at the level of 80.56 and it is trading below 21DEMA that is the major bearish factor. Until it crosses it, we remain in bearish mode. After hitting a 2-months high of 81.39, the dollar index sharply declined to 80.15 In the technical front, oscillators sign a bullish indications for limited downside with a higher lows pattern. If prices are above the level 80.56, next immediate resistance comes at the level of 80.70. Following its drop in the previous week, the FOMC decision to further reduce its economic stimulus, accompanied with a stronger fourth-quarter GDP reading and other economic data, could set the US Dollar to start a fresh leg of up-move against other major currencies.

Support: 80.15, 80.0, 79.70.

Resistance: 80.56, 80.69, 81.27.