FX.co ★ #USDX technical analysis for January 20, 2015

The Dollar index is moving higher but still inside the expanding triangle pattern. This upward move in prices is not very promising, and I feel that this rise is very fragile. Bulls should be very cautious. Trend remains bullish in the longer-term and the best strategy is to raise stops.

Black lines = expanding triangle pattern

The expanding triangle pattern implies that we should expect Dollar weakness and a pullback towards 91.50 as long as the price remains below the upper triangle boundary. Resistance is at 92.90 and short-term support at 92.50. Breaking below 92.50 will be a sell signal with short-term target of 91.50.

Black lines = price channel

The Dollar index remains inside the upward sloping trend channel. Ichimoku indicators remain fully bullish and with no signs of a possible reversal. The only worrying sign is the thin Ichimoku cloud. Important weekly support is found at 90. Breaking below that level will imply the end of this upward move from 79.75.