USDX technical analysis for December 21, 2015

The US dollar index made a reversal at the level of 99.25 where the 61.8% Fibonacci retracement resistance was found for a decline from 100.50 to 97.20. Bulls can still move this index higher, but bears are currently in control of this reversal.

The index found short-term support at 98.20 that bulls need to hold in order to move upwards at 97.20 and continue moving higher. On the other hand, bears have managed to reverse trend lower. However, they need to break below an important low of 97.20 to gain control of the short-term trend.

Blue line - long-term resistance

The weekly chart remains bullish as the price is above the Ichimoku cloud and both the tenkan- and kijun-sen indicators. However, there are signs of reversal as the price is testing the tenkan-sen support level and the stochastic oscillator is turning lower from overbought levels. Bulls need to be very cautious, and if I was long I would exit if 97.20 was broken,

The material has been provided by InstaForex Company - www.instaforex.com