FX.co ★ USDX technical analysis for October 20, 2015

The US dollar index has reached important short-term resistance levels and is expected to make a pullback. As long as the index is above 94.40, bulls have a chance of another bounce higher to try and break above the critical resistance at 95.80.

Red line - resistance

Green line - support

The US dollar index is below the Ichimoku cloud. Support is found at 94.40 and resistance is seen at 95.80. I expect the US dollar index to remain weak and push lower towards the green line support. A 4-hour close below 94.40 will open the way to new short-term lows.

Red line -weekly resistance

Green line - weekly support

The weekly candle is trying to break above the Ichimoku cloud upper boundary. However, a rejection here will push the index towards the green trend-line support. Long-term support is found at the 38% Fibonacci retracement, the level, which US dollar bulls should not ignore.