FX.co ★ USDX technical analysis for December 10, 2015

The US dollar index reached a new lower low of 97 as anticipated after the rejection in the area of 98.80-99. I believe that now US dollar bears should be very cautious as upward reversal is quite possible. Yesterday's high acts as important resistance.

In the 4-hour chart, the price is below the Ichimoku cloud. Short-term resistance is found at 98.10 and next at 99. Stochastics are oversold and a bounce should be expected over the next few days. We could see a lower low, but I believe traders should be starting to think of upward reversal.

In the weekly chart, the US dollar index has reached the 50% retracement. We could test even the kijun-sen and the 61.8% Fibonacci retracement at 96.60-96.40. This is an important support and buy area. I believe that with the Fed raising rates next week, we should expect the US dollar to rally towards new highs.