Technical analysis of US Dollar Index for January 21, 2016 Market Analysis Review

Technical outlook and chart setups:

The US Dollar index might be looking to break below the consolidation range for now. The index is trading around 99.00 levels for now after reversing from its resistance line around 99.25/30 levels earlier. It should be looking to break below 98.60 levels and subsequently below the consolidation range here. It is hence recommended to initiate short positions now, with risk at 99.40 levels. Immediate support is seen at 98.60 levels while resistance is seen at 99.30/35 levels respectively. Only a push above 99.40/50 levels from here, should change the bearish view going forward.

Trading recommendations:

Remain short now, stop at 99.40, a target is at 96.40.

Good luck!

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