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20.01.202216:11 Forex Analysis & Reviews: Short-term analysis on the Dollar index for January 20, 2022.

The Dollar index recently broke out and below the bullish channel it was in. Price fell from 96.91 to 94.60 following our path from 2017. Price continues to follow that path and that is why is now bouncing towards 96 again. Today we see the technical aspect of this bounce and what we can learn from it.

Exchange Rates 20.01.2022 analysis

Blue lines- bullish channel

The Dollar index is testing the bullish channel from below. Price is challenging the lower channel boundary. A rejection at current levels would be a bearish sign. Bulls do not want to see a rejection at current levels. They need to see price continue higher. Dollar bulls will need to continue making higher highs and higher lows. The recent low at 94.60 should be defended and not violated. On the other hand, bears want to see price get rejected at the lower channel boundary and eventually break below 94.60. This would increase chances of a bigger correction maybe towards 93.40.

*La presente analisi del mercato ha un carattere esclusivamente informativo e non rappresenta una guida per l`effettuazione di una transazione.

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