FX.co ★ USDX technical analysis for December 18, 2015

The US dollar index faced important short-term resistance and reversed. Important medium-term support is found at 97. If lost, we should expect a bigger decline towards 94.50-95. If however the index reaches a higher low, we should expect the price to move above 100.50 next week.

The US dollar index brake above the Ichimoku cloud in the 4-hour chart, but got rejected at the 61.8% Fibonacci retracement. This rejection is important. However, I believe we can see a push higher towards the 78.6% Fibo. Important short-term support is found at 98.30. Resistance is seen at 99.30 and at 99.80.

The weekly chart remains bullish in all time frames. An important bounce off the 50% retracement is now an important reversal point. In case of a breakout at the level of 97, the price will fall towards 95-94 where the Ichimoku cloud is found. So, we remain bullish as long as the price is above 97 on a weekly basis.