FX.co ★ Technical analysis of USDX for January 12, 2017

The Dollar index bounced towards resistance of 102.50 as expected after breaking the downward sloping resistance trend line at 102.10 and then got rejected according to our analysis expectations. The Dollar index is now making lower lows confirming a downtrend.

Black lines - price projection

The Dollar index has broken below support at 101.30 and is making new lows. The trend remains bearish. The Dollar index has 100.40 as the first target of the decline. Important resistance is at yesterday's highs. A break above yesterday's highs will increase the chances of new highs above 104 a lot.

On a daily basis price has broken below the kijun-sen (yellow line indicator) and is heading towards the Ichimoku cloud support at 100. An important high is confirmed and Dollar bulls should be very cautious as the highs at 103.70 could be long-term highs. The

key for this scenario is yesterday's high. As long as we are below it, the trend will remain bearish.