FX.co ★ Technical analysis of USDX for January 19, 2017

The Dollar index bounced as we expected towards 101 and a bit higher. Trend remains bearish as price remains inside the bearish channel and I believe this is another shorting opportunity for the Dollar index. I do not believe we have seen the lows in the index and we should prepare for new lows.

Red lines - bearish channel

The Dollar index is trading below the Ichimoku cloud on the 4-hour chart. Short-term resistance is here at 101.50 and support at 101. Breaking below 101 will increase the chances of my bearish view for a new low towards 100.

The Dollar index is re-testing the broken tenkan-sen (Red line indicator) on a weekly basis. Oscillators are overbought and turning lower. This is a bearish sign to me. Inability to break above the tenkan-sen will imply more downside should be expected specially if price breaks this week's lows. 99 remains my target.