FX.co ★ USDX technical analysis for January 23, 2016

The US dollar index remains inside the bearish wedge pattern and continues to grind higher. However, I prefer to remain bearish and expect this wedge pattern to be broken downwards.

The US dollar index is trading inside the red wedge pattern and above the Ichimoku cloud. Support is found at 98.80 where both the cloud and the lower wedge boundary are found. If this level gets broken, we should expect pressure to be put onto the next critical support level of 98.50.

In the daily chart, the index is above the cloud and both tenkan- and kijun-sen. Support is critical at 98.50 as Ichimoku indicators confidence and wedge support is found. The level of 97 is the first short-term target if support at 98.50 fails to work well.