FX.co ★ #USDX technical analysis for January 23, 2015

Mario Draghi's announcement of the European version of Quantitative Easing gave a boost to the dollar as the euro weakend. The Dollar index has broken above the boundaries of the wedge formation pushing to new highs and towards our longer-term target of 94-95.

The Dollar index broke above 93.30 and has made a high at 94.48. I have given the target area of 94.95 some time ago, and I continue to believe that this trend remains strong and bullish. Traders should not bet against it as it is very strong. The Dollar index has now support at 93 and short-term trend will change only if price breaks below 92.50.

I post once again the monthly chart showing how the price exploded higher after breaking so easily above the 38% retracement. It is now moving towards 95-96 area where the 50% retracement is. With the dynamic of this trend, I will not be surprised to see the Dollar index even towards the 61.8% retracement. Trend is clearly bullish and very strong. There is no reason to go against it now.