FX.co ★ USDX technical analysis for February 8, 2016

The US dollar index has reached important weekly support levels bouncing off as expected. There are signs of a short-term reversal but I'm not sure that the decline from 99.80 is over.

Red lines - bearish wedge

The price is bouncing above the short-term tenkan-sen indicator resistance and could push higher towards the kijun-sen (yellow line indicator) that also coincides with the 38% Fibonacci retracement. The level of 97.65 is a short-term bounce target. However, there are still chances that we have made an important bottom.

On a weekly basis, the price has respected the cloud and the kijun-sen. The price bounced and closed above both support indicators. Next important weekly resistance is seen at 98.05. A weekly close above will open the way to bull's comeback and probably new highs.