FX.co ★ Technical analysis of #USDX for January 9, 2015

The Dollar index is showing signs of a short-term reversal as I mentioned in my yesterday's analysis. The Dollar index is expected to pull back towards 91.50, but I believe the long-term uptrend is not over yet and we should expect this move to continue towards 94-95.

Blue line = support trend line

Red line = expected path of price

The Dollar index is showing some signs of a short-term top. The trend remains bullish but I would expect a pullback towards the 38% retracement and towards the Ichimoku cloud and the blue support trendline. This pullback is only a corrective part of the bigger uptrend and, as the red lines show, I expect this pullback to be followed by a new upward move towards new highs.

The weekly chart remains fully bullish. There are some signs of a possible top, but I believe it will be only a short-term top. Important weekly support is found at 89.90. The longer-term target of the Dollar index is at 94-95.