Technical analysis of USDX for January 16, 2017

The Dollar index continues to make lower lows and lower highs. Price is in a bearish channel. As long as price remains below 102.65, trend is bearish and we are heading towards 100 and maybe lower. Trend change will be confirmed in the short term for a break above 102.65.

Black lines- Bearish channel

Price is trading inside the black channel and below the Ichimoku cloud. There is no significant divergence sign yet, so I would not rule out a new lower low today or this week. Short-term resistance is at 101.80 and next at 102.20. Support is at 100.40.

On a daily basis price is trading below the kijun-sen (yellow line indicator) and is trying to break up above it. Price has made an important low at 100.70 last week and if we break below it we should see price move towards 100 or even marginally below it. Important resistance on a daily basis is found at 102.20. A daily close above it will open the way for a move towards the important trend resistance of 102.65.The material has been provided by InstaForex Company - www.instaforex.com