FX.co ★ #USDX technical analysis for January 14, 2015

The Dollar index continues to consolidate. There is no clear trend as the index moves mainly sideways inside a trading range between 92.40 and 91.70. Soon we will see a breakout either towards 93 or towards 91.

Blue line = support

Red line = resistance

The Dollar index is still between the short-term resistance and support levels or, otherwise, it is forming a cotracting triangle. Soon we will have a breakout and we can then start a new short-term move. Breaking above 92.40 will be a bullish signal. On the other hand, a break below 91.70 will be a bearish signal. The short-term upside target is 93 and the short-term downside target is 91.

The weekly chart remains fully bullish. If Dollar were to weaken now, a pullback towards 90 would be justified. The 90 level is the first important weekly level where I would expect a weekly pullback to an end. For now, the weekly candle does not imply any downward reversal but bulls should be very cautious in case 91.70 fails to hold.