FX.co ★ #USDX technical analysis for January 26, 2015

The Dollar index has reached my target above 95 and is making a pullback. Longer-term trend remains bullish. In the short-term the price remains supported so we should not be surprised if we see a new higher high early this week. Trend is very strong, and we should not bet against at this point.

At 94.80 we find the tenkan-sen support for the short-term. The Dollar index could make a deeper pullback towards 94 in the short-term. Such a pullback will not cancel the bullish trend, but, on the other hand, it could fuel it for a new stronger uptrend.

The weekly chart remains fully bullish and we could see some pause in the uptrend at the current levels. We have reached very close to the 50% retracement level at 95.70. Breaking above it will could signal even more upside towards 101 where the monthly 61.8% retracement is found. Trend is very strong and bullish. Bulls should better raise their stops, and I prefer not to bet against this trend.