FX.co ★ USDX technical analysis for January 12, 2016

The US Dollar index has bounced towards the 99 resistance level and I expect more selling pressures to push the price lower to test the 98 support area.

Blue line - support

Red line - resistance

The US Dollar index is mainly moving sideways as the price holds above the 98 support and below 99 resistance. I believe that the US Dollar index will eventually break support and push lower towards at least 97. Even after the better-than-expected Non-Farm Payrolls announced last Friday, the US Dollar reaction has been very muted.

According to the daily chart, the US Dollar index has found resistance at the upper cloud boundary. A rejection there will confirm the bearish short-term trend, the index is in, with possible target at the lower cloud boundary. If support at 98 is broken, we should expect moves towards 97 at least.