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