FX.co ★ USDX technical analysis for December 8, 2015

The US dollar index has made a bounce, as we expected, reaching the 38% Fibonacci retracement resistance. We expect reversal soon towards the downside and towards new short-term lows after the rejection in the area of 100.

The price is below the Ichimoku cloud and we have signs of rejection at the 38% Fibonacci retracement. The price should now continue moving lower in order to test last week's lows. Resistance is seen at 99.50 while support is at 97.60.

The weekly candle remains above the Ichimoku cloud. Weekly support comes at 97.50 where the 38% Fibonacci retracement is found and where we saw prices bouncing last week. If this low is broken, we should expect the index to move lower towards the 50% retracement and even the 61.8% retracement.