Ichimoku indicator analysis of USDX for June 27, 2017

The Dollar index is holding short-term support. We might eventually see the bounce towards 98.50-99 we were expecting after all. This is not the time to be bearish on the Dollar.

The Dollar index is holding above cloud. Short-term support is at 97. Resistance is at 97.50. Break above 97.50 and it will be almost certain that the June high of 97.85 will be broken.

Blue lines – bearish channel

We continue to expect the Dollar index to move upwards and sideways towards the upper channel boundary. The bullish divergence signs in the weekly chart imply that next couple of weeks should continue and favor the Dollar. Despite the weekly Kumo below, there are no selling strength…and this is depicted in the divergence. That is why I expect a bounce first.

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Source:: Ichimoku indicator analysis of USDX for June 27, 2017