USDX technical analysis for January 8, 2016

The US dollar index has reversed as expected towards the short-term trend line and cloud support. It is preferred to be neutral today as we await for the NFP data release from the US.

Blue line - trend-line support

The US dollar index is testing the cloud and trend-line support at 98.30. Breaking below it will open the way for a move below 97. On the other hand, an important resistance is found at 99.60. If it is broken, then we should expect previous highs to be tested.

The daily chart has turned neutral in Ichimoku terms as the price closed inside it yesterday. There are increased chances now to see the lower boundary of the cloud if yesterday's highs are not broken upwards. Important news will come out today that will influence the trend so traders should be patient.The material has been provided by InstaForex Company - www.instaforex.com