FX.co ★ USDX technical analysis for February 12, 2016

The US dollar index remains in a bearish trend, but I believe it is time to make an upward reversal today or early next week. I expect the US dollar index to move towards 97 if not higher.

Blue lines - bearish channel

The US dollar index is testing short-term resistance at 95.85. A breakout above the channel will open the way to a bounce towards 96.30 and 97. The stochastic oscillator looks oversold and is turning higher. I believe we should see some strength in the US dollar in coming days.

The weekly chart remains bearish as the price is inside the Ichimoku cloud. However I expect the price to perform a bounce here in order to back test the broken support level. Important weekly resistance is seen at 96.60 and next at 97.50. I believe the short-term opportunity lies on the bullish side as the downside is limited now.