FX.co ★ Technical analysis of USDX for January 18, 2017

The Dollar index remains in a short-term bearish trend and is moving towards our 100-99 target area where important medium-term support is found. Today we may see a bounce but overall I expect the bearish trend to continue. So any bounce should be seen as an opportunity to sell again.

The Dollar index is trading below the Ichimoku cloud and inside the bearish channel. Price is bouncing off the lower channel boundary, so we may see some upward movement today and tomorrow. Short-term resistance is found at 101 and next at 101.50. Support is at 100 and at 99.

On a weekly basis things are quite bearish. The oscillators are turning downwards from overbought levels. Price has broken through the weekly tenkan-sen (red line indicator) and is heading towards the kijun-sen (yellow line indicator) at 99. If this level is also broken, we should expect the green long-term trend line to be tested at least.