Ichimoku cloud indicator analysis of USDX for February 20, 2018


The dollar index is challenging the 4 hour cloud resistance and the medium-term trend line resistance at 89.50-90 area. Trend is bearish in cloud terms, but it can confirm a reversal soon if it breaks above the cloud.

Red line – medium-term resistance trend line

The US dollar index is testing the previous support which turned into resistance at 89.60. The lower boundary of the Ichimoku cloud is also at this level. This is the important resistance. A rejection at the current price level could push the index to new lows. The short-term support is at 89.20. A break below it will be a bearish sign.


Blue line -long-term resistance

On a weekly basis the US dollar index remains in a bearish trend. The price needs to break and close first above 90.85 and next 91.50 levels in order to confirm a reversal. Target for a possible bigger bounce remains at the weekly Kumo near 93. A rejection at the 91 area could signal another turn lower towards 87. My bigger picture view considers that the entire decline from 103.60 is either complete or near completion, so traders should be monitoring reversal signs.

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

Source:: Ichimoku cloud indicator analysis of USDX for February 20, 2018

About the Author
InstaForex brand was created in 2007 and at the moment it’s a top choice of more than 2,000,000 traders. More than 1,000 clients open accounts with InstaForex every day. All InstaForex clients get great opportunities for effective trading on the forex market, as well as on-time technical and customer support

Leave a Reply