FX.co ★ #USDX technical analysis for January 28, 2015

The Dollar index continued to lower yesterday, as expected, towards 94 and towards my important daily support at 93.75. Longer-term trend remains bullish, but the short-term top at 95.50 is now an important resistance.

On the 4-hour chart shown above the Dollar index remains above the Ichimoku cloud support and is testing the kijun-sen support (yellow line). Resistance is found at 95. If it is broken, we will have increased chances of a new brea out to new highs. The support at 94-93.75 could provide an upward reversal.

The daily chart remains bullish as the price is testing the daily ichimoku tenkan-sen indicator at 93.50-93.75. If this support is broken on a daily basis we should expect a move towards 92.50. The longer-term trend remains bullish. However, bulls should be very cautious if the level of 92.50 is broken.