Ichimoku cloud indicator analysis of USDX for February 8, 2018

The Dollar index has reversed short-term trend to bullish. Price broke above the 89.60 resistance level, has also broken out above the 4-hour cloud, back tested it as expected and is making new higher highs.

For the last few weeks I have been saying that the downside was limited and we should expect a big bounce in the Dollar index. We have now confirmation that such a bounce is underway. Price is trading above the 4-hour cloud. Support is at 89.60 which was previous resistance.

On a daily basis Gold remains in a bearish trend but with signs of trend reversal. Price is below the kijun-sen at 90.70, but a break above it will open the way for a move towards 91.50-92. Support is at yesterday’s low. A daily close below yesterday’s low will bring selling pressures back at the Dollar index. This would not be a good sign for bulls.

The material has been provided by InstaForex Company – www.instaforex.com

Source:: Ichimoku cloud indicator analysis of USDX for February 8, 2018