Dollar Index Analysis: Support and Resistance Levels to Watch on Recent Bullish Recovery

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the USDX for January 9, 2026.

Technical Analysis of USDX

USDX Daily Chart Insight

• The USDX is staging a powerful short-term rebound after experiencing substantial losses through late November and December, though the long-term trend (reflected by the sloping green moving average) continues to show bearish or neutral-downward momentum. The index now stands at a critical inflection point, with aggressive upward price action encountering a cluster of medium-term resistance near the black moving average. Traders face two distinct approaches: an aggressive strategy would involve entering long positions on a decisive break above 98.80, targeting 99.40, while a conservative approach suggests waiting for a pullback to the purple moving average (approximately 98.20) to confirm renewed buying interest, offering a more favorable risk/reward ratio for long entries.
• Key Levels: The USDX faces immediate resistance at 98.70–98.80 (black moving average and early December price stalls), followed by secondary resistance at 99.40 (green moving average/200-day EMA, representing a full retracement of the recent downtrend), and major structural resistance at 100.20–100.38 (mid-November peaks that would signal a complete trend reversal). On the downside, immediate support sits at 98.20 (purple moving average), with secondary support at 97.40 (late December swing low whose breach would negate the current recovery), and major psychological support at 96.00 (mid-September bottom).

USDX 2-Hour Chart Analysis

• Recent price action displays a series of strong bullish candles, though the most recent bar shows a small body with a long upper wick, indicating that sellers are beginning to emerge as the price approaches the 98.70 resistance level. Given this technical signal, the highest probability scenario involves a brief period of sideways consolidation or a minor pullback toward 98.55 before the USDX attempts another breakout push toward the 99.00 level.
• Breakout Scenarios: A bullish continuation breakout would be triggered by a strong H2 close above 98.710, targeting 99.00, with validation coming from the Stochastic remaining above 80 and the purple moving average maintaining its steep upward slope. Conversely, a bearish mean-reversion pullback would be triggered by failure to break 98.710 followed by a breakdown below 98.545 (the purple moving average), targeting the major support cluster around 98.20, though this would not necessarily signal the end of the uptrend but rather present a “buying the dip” opportunity for bulls seeking better entry prices with improved risk/reward dynamics.

USDX Pivot Indicator

• On the 30-minute chart, the USDX presents a favorable “Buy the Dip” setup, with the overall structure maintaining strong upward momentum despite some slight exhaustion signals evident in the most recent candle’s upper wick. The key technical level to monitor is 98.64, as holding above this threshold will sustain the aggressive rally, whereas a break below would indicate a deeper retracement is developing toward the 98.50 zone.
• Bullish Continuation: The bullish continuation scenario would be triggered by a clean break and close above 98.715, with initial targets at 98.80 followed by a test of the 99.00 area. Traders should observe whether the Stochastic indicator remains embedded above 80, which would confirm that the “overbought” condition in this context actually indicates a strong trending environment rather than an impending reversal.
• Intraday Mean-Reversion: The intraday mean-reversion scenario would be triggered by an M30 candle closing below 98.640 (the purple moving average), with a price target toward the black moving average at 98.500. Many intraday traders would view this as a “healthy” pullback rather than a reversal, presenting a potential entry point for long positions at more favorable price levels.

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Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.